The Impact of Electronic Toll Collection on Fleet Managers and Leasing Companies
Exclusive Industry Survey OF FLEET MANAGERS
Transcript of Exclusive Industry Survey OF FLEET MANAGERS
Fleet manager responsibilities are increasing, and many of today’s commercial � eet managers are no
longer tactical, day-to-day employees. Commenting on this sea change, one
� eet manager said, “the [� eet manager] job is truly being recognized as more of a strategic position, with a tremendous opportunity to impact bottom-line re-sults, as opposed to operational.”
Validating this assertion, Automo-tive Fleet’s 2008 Biennial Salary Sur-vey found 17 percent of commercial � eet managers earned more than $100,000 per year in 2008 (Chart 1).
Analyzing the higher � eet manag-er pay, one � eet manager said, “I think organizations are realizing the value of experienced � eet managers and are compensating them accordingly. Ad-ditionally, many managers have held their positions for extended periods and have had salary increases result-ing from longevity.”
Assessing from a different perspec-tive, one � eet manager noted, “With a reduction in true, full-time � eet man-agers, the � eet responsibility is being given to experienced, tenured manag-ers in other areas within the business, such as � nance, HR, etc., who may be earning more than $100,000 because of
In 2008, 17 percent of commercial � eet managers earned more than $100,000 per year, 8 percent of which earned more than $120,000. Fleet managers with MBAs
earned an annual median salary of $90,000.
OF FLEET MANAGERSPER YEAR
MANAGERSMANAGERSMANAGERSEARN MORE THAN
By Lauren Fletcher
Chart 1
Salary Breakdown for All Commercial Fleet Managers
Less than $30,000 ............... 1%$30,001-$40,000 ................. 2%$40,001-$50,000 ............... 11%$50,001-$60,000 ............... 12%$60,001-$70,000 ............... 16%$70,001-$80,000 ............... 16%$80,001-$90,000 ............... 14%$90,001-$100,000 ............. 11%$100,001-$120,000 ............. 9%More than $120,000 ............ 8%
Exclusive Industry Survey
Chart 2
Salary Change Overall
No Change ..........................13%
Increase 0-3% ....................47%
Increase 4-6% ....................29%
Increase 7% or more.......................7%
Decrease 0-3% ........................ 2%
Decrease 7% or more ............. 2%
The 2008 Automotive Fleet Biennial Salary Survey found that:
• Only 14 percent of fl eet managers were paid less than $50,000 in 2008.
• Fleet managers with some post-gradu-ate study earned the highest median salary.
• Fleet managers in the Midwest earned the highest median salary.
AT A GLANCE
their current position, not necessarily because of the � eet position.”
In 2008, only 14 percent of � eet managers were paid less than $50,000. Overall, 83 percent of � eet managers surveyed received a pay increase in 2008 (Chart 2).
Of respondents who did not receive an increase, one � eet manager com-mented her company “did not provide pay increases for the � rst time in 99 years.” Another � eet manager spoke of salary freezes in his company over the past two years.
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$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000More
$0
$20K
$40K
$60K
$80K
$100K
$77,500
$67,500
$77,500
$72,500
$77,500
$97,500
$82,500
$90,000
$87,500
37%
15%
32%
16%
$0K
$20K
$40K
$60K
$80K
$100K
$52,500
$67,500
$47,500
$62,500
$77,500
$85,000
$0
$20K
$40K
$60K
$80K
$100K
$62,500
$67,500
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$72,500
$75,000
$85,000
$75,000
$0
$20K
$40K
$60K
$80K
$100K
$62,500
$62,500
$87,500
$87,500
Years of Experiencein Fleet – Women
Years of Experiencein Fleet – Men
13%
46%
28%
5%5%1%
15%29%
34%
17%
7%
5%
55%
16%
14%
11%
4%2%
59%22%
13%
Chart 6
Compensation Breakdown by Education
■ High School
■ Some College
■ Liberal Arts Degree
■ Business Degree
■ Technical Degree
■ Some Post-Graduate
Study
■ Post-Graduate Degree
■ MBA
■ CAFM
Chart 4
Compensation Breakdown by Number of Vehicles Managed
No. of Vehicles Median Compensation51-150 .......................... $67,500151-300 ........................ $62,500301-500 ........................ $65,000501-1,000 ..................... $67,500More than 1,000 ........... $87,500
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$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000More
$0
$20K
$40K
$60K
$80K
$100K
$77,50
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$67,50
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$77,50
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$72,50
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$77,50
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$97,50
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$82,50
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$90,00
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$87,50
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37%
15%
32%
16%
$0K
$20K
$40K
$60K
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$100K
$52,50
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$67,50
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$47,50
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$62,50
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$77,50
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$85,00
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$0
$20K
$40K
$60K
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$62,50
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$67,50
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$0
$20K
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$62,50
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$62,50
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$87,50
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$87,50
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Years of Experiencein Fleet – Women
Years of Experiencein Fleet – Men
13%
46%
28%
5%5%1%
15%29%
34%
17%
7%
5%
55%
16%
14%
11%
4%2%
59%22%
13%Chart 3
Compensation Breakdown by
People Supervised
■ None ■ 1-2 ■ 3-5 ■ More than 5
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Chart 5
Percent of Fleet Managers Who
Received a Cost-of-Living
Adjustment in 2008
40%
Four percent of survey respondents reported a decrease in pay in 2008, while 13 percent reported no change.
Numerous Factors Influence PayFleet managers who supervise two
or less staff members receive a median annual salary of $62,500 compared to $87,500 for fleet managers supervising more than three staff members.
The number of vehicles managed also in� uences � eet manager salaries (Chart 4). Fleet managers who over-saw more than 1,000 vehicles report-
ed the highest compensation, a median pay of $87,500.
Education also has an impact on a � eet manager’s salary. The highest paid � eet managers surveyed completed some post-graduate study and received a me-dian income of $97,500 (Chart 6). Fleet managers who received an MBA re-ceived the second-highest median in-come of $90,000.
Fleet managers who worked in the � eet industry for more than 20 years reported the highest median salary of $85,000 (Chart 7).
Fleet managers surveyed general-ly agreed responsibilities would in-crease in 2009 while pay would stay the same. One � eet manager comment-ed her workload would increase “due to the increased number of units to man-age, increased need for more sophis-ticated reporting to help � eld manag-ers reduce � eet costs, reductions in � eet department head counts per ve-hicle, etc.”
Another � eet manager said, “I think there is a great likelihood I will be as-suming additional duties with no addi-tional compensation. Everyone here is just thankful to have a job.”
In contrast, one � eet manager not-
Chart 8
Percent of Fleet Managers Who Receive a Company Car
with Their Position
22%0
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$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000More
$0
$20K
$40K
$60K
$80K
$100K
$77,500
$67,500
$77,500
$72,500
$77,500
$97,500
$82,500
$90,000
$87,500
37%
15%
32%
16%
$0K
$20K
$40K
$60K
$80K
$100K
$52,500
$67,500
$47,500
$62,500
$77,500
$85,000
$0
$20K
$40K
$60K
$80K
$100K
$62,500
$67,500
$70,000
$72,500
$75,000
$85,000
$75,000
$0
$20K
$40K
$60K
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$100K
$62,500
$62,500
$87,500
$87,500
Years of Experiencein Fleet – Women
Years of Experiencein Fleet – Men
13%
46%
28%
5%5%1%
15%29%
34%
17%
7%
5%
55%
16%
14%
11%
4%2%
59%22%
13%
Chart 9
Compensation Breakdown by Supervising Department
■ Sales ■ Finance/Treasury ■ Personnel/Human Resources
■ General Administration/Management ■ Transportation
■ Purchasing ■ Other
Reporting Department Affects Salary
As far as the department a � eet man-ager reports to, 14 percent of � eet man-agers report to the purchasing department in 2008 and received the highest medi-an salary of $85,000 (Charts 9 and 10), followed by the transportation depart-ment at $75,000 per year, representing 10 percent of surveyed � eet managers. Fleet managers who reported to the sales department reported the lowest median
salary in 2008 at $62,500 (2 percent of � eet managers surveyed).
The study also revealed 22 percent of surveyed � eet managers receive a com-pany car with their position.
A slim majority of � eet managers (55 percent) reported � eet was their only re-sponsibility in 2008 (Chart 12). Typical ad-ditional responsibilities include planning and managing meetings (16 percent), per-sonnel relocation (6 percent), and travel services management (3 percent).
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$30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 $120,000More
$0
$20K
$40K
$60K
$80K
$100K
$77,500
$67,500
$77,500
$72,500
$77,500
$97,500
$82,500
$90,000
$87,500
37%
15%
32%
16%
$0K
$20K
$40K
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$52,50
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$67,50
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$47,50
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$0
$20K
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$62,500
$67,500
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$75,000
$0
$20K
$40K
$60K
$80K
$100K$62,500
$62,500
$87,500
$87,500
Years of Experiencein Fleet – Women
Years of Experiencein Fleet – Men
13%
46%
28%
5%5%1%
15%29%
34%
17%
7%
5%
55%
16%
14%
11%
4%2%
59%22%
13%
Chart 7
Compensation Breakdown by Years of Experience in Fleet
■ Less than 1 Year ■ 1-3 Years ■ 4-5 Years ■ 6-10 Years
■ 11-20 Years ■ More than 20 Years
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Chart 10
To Whom Do Fleet Managers
Report?
General Administration/Management ...................... 29%Finance/Treasury ............... 22%Purchasing ......................... 14%Transportation .................... 10%Sales .................................... 2%Personnel/HumanResources ............................ 1%Other .................................. 22%
ed she “did not envision increased re-sponsibilities as our company has been aggressively outsourcing positions and responsibilities.”
Fifty-nine percent of � eet managers surveyed in 2008 reported they spent 76-100 percent of their time on � eet (Chart 13), followed by 22 percent of � eet man-agers reporting only being able to spend 51-75 percent of their time on � eet man-agement. Nineteen percent of � eet man-agers say they spent less than half their day on � eet management.
Fleet managers in the Midwest re-ported the highest median salary at $77,500 (Chart 15), while � eet man-agers in the East South Central region
reported the lowest median salary at $60,000, followed by the Mountain re-gion at $67,500.
To Find Out MoreAdditional charts and data are
available with the online version of this article at www.automotive-� eet.com/magazine. See the May/June 2009 is-sue of Government Fleet magazine for a breakdown of public sector � eet man-ager salaries. AF
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$77,50
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37%
15%
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$0K
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$80K
$100K
$52,50
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$62,50
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Years of Experiencein Fleet – Women
Years of Experiencein Fleet – Men
13%
46%
28%
5%5%1%
15%29%
34%
17%
7%
5%
55%
16%
14%
11%
4%2%
59%22%
13%
Chart 13
Breakdown by Percentage
of Time Spent on Fleet
Management■ Less than 10% ■ 10-25%
■ 26-50% ■ 51-75% ■ 76-100%
WestCentralMidwestNortheastSoutheast
1 2
3
4
5
67
8
9Chart 15
Median Compensation Breakdown by Geographic
Division
1 Pacifi c ........................................$75,0002 Mountain ...................................$67,500 3 West North Central ....................$77,500 4 West South Central ....................$77,5005 East North Central ......................$82,5006 East South Central .....................$60,0007 South Atlantic .............................$70,0008 Middle Atlantic. ..........................$70,0009 New England ..............................$72,500
* Regions based on U.S. Census Regions and Divisions
Chart 12
Breakdown of Responsibilities Other than Fleet Management
* Percentages exceed 100% due to multiple responses.
Only Fleet ...............................55%
Travel Services ........................3%
Planning/Managing Meetings ....16%
Personnel Relocation ...............6%
Other ......................................31%
Chart 14
Breakdown of Main Fleet
Responsibilities
• Develop Fleet Policies and Procedures ............................93%• Develop a Fleet Selector ........72%• Negotiate Pricing with New-Vehicle Manufacturers ..67%• Manage Remarketing of Used-Vehicles........................67%• Develop Annual Budget .........59%• Authorize Preventive Maintenance..........................72%• Negotiate with Fleet Suppliers ...............................70%• Manage Car Rental Program .................................22%• Manage Fleet Management Company ...............................58%• Manage Executive Vehicle Program ....................27%
Chart 11
Percent of Fleet Managers Receiving Performance-Based Compensation Incentives
48%