Are you tired of the unpredictable ups and downs of pay in the trucking industry? Do you crave stability and certainty in your earnings, without sacrificing the freedom of the open road? Well, buckle up because we're about to dive into a game-changer: guaranteed pay programs.
In today's fast-paced world of transportation, where every mile counts and every minute matters, finding a company that offers a guaranteed pay program can feel like discovering an oasis in the desert.
But what exactly is a guaranteed pay program? How does it work? And most importantly, how can it benefit you, the hardworking driver?
Anderson Trucking Service (ATS) has a guaranteed pay program so we know a thing or two about what they entail.
Join us as we explore the ins and outs of guaranteed pay programs. From understanding the concept to uncovering the perks and potential pitfalls, consider this your roadmap to navigating the world of guaranteed earnings with confidence.
Whether you're a seasoned pro looking to level up your career or a rookie eager to hit the ground running, sit back, relax, and get ready to learn how guaranteed pay programs can put you in the driver's seat of your financial future.
Types of Guaranteed Pay Programs in Trucking
Guaranteed pay programs ensure drivers consistently earn a set amount — whether temporarily as they get started or for the duration of their time at a company.
In general, carriers refer to their guaranteed pay programs as minimum pay programs, guaranteed pay programs, or a salary paid structure. It depends on how the program was developed and structured.
Let’s talk about each in turn.
Guaranteed Pay Trucking
Guaranteed pay programs provide drivers with a set income for a set period. As long as drivers meet program requirements, they’re guaranteed to make the agreed-upon amount.
If you don’t earn that amount on your own hauling loads, the company will cut you a check for the difference.
Drivers may be promised a guaranteed amount weekly, bi-weekly, or monthly. For example, ATS flatbed company drivers on the guaranteed pay program gross $1,300 per week for the first 12 weeks of their employment with ATS.
Guaranteed pay means you’ll earn only that specified amount per pay period — no more and no less.
Regardless of the loads you haul (or don’t haul), you will make only the specified amount per pay period. If you’re on a guarantee program that pays you $1,500 per week, you’ll only be earning that amount per week/pay period.
When you’re on a guaranteed pay program, you’ll be paid on top of the loads you haul if you don’t meet the program’s minimum pay guarantee. Let’s say you earn $900 on the loads you hauled but the guaranteed pay is set at $1,300. The company will pay you an additional $400 to make up the difference.
Some carriers pay this additional money out alongside your load earnings. Some companies may pay it the next week or pay period. Industry-wide, it’s about a 50/50 split.
Minimum Pay Trucking
Minimum pay means you’ll never make less than a specific amount of money. In other words, you’ll normally earn well and above the minimum amount based on the freight the company has to offer.
For example, a company may have a minimum pay program of $1,300 a week. They estimate that you’ll definitely earn more than that on the loads you haul each week.
If you for some reason don’t earn out, they’ll make up the difference by cutting you a check. With a minimum pay program, you’ll make at least that much money every pay period.
Minimum pay is another program that allows you as a driver to have peace of mind knowing the minimum amount you will make each pay period.
Let’s look at an example of a guaranteed pay program compared to a minimum pay program — each set at $1,500:
- Guaranteed Pay Program: You take home $1,500 per week — no more, no less.
- Minimum Pay Program: You take home at least $1,500 per week. Whatever you earn above $1,500 is yours to keep.
Salaried Pay Trucking
Salaried pay is just what it sounds like: Drivers are paid the same amount week to week or month to month no matter how many or how few loads they haul. You’ll have to meet performance expectations, of course, but how much you do or don’t haul doesn’t impact your salary.
Just like an office employee, drivers on salaried pay follow a set hourly schedule. Pay might be based on the expectation that drivers will drive a certain number of hours per week on average.
However, with salary pay, you could drive 40 hours one week and 60 the next and still earn the same amount of money.
Guaranteed Pay Program Requirements
There are always guaranteed pay program requirements. If you talk to a recruiter and they say there are no requirements, ask for documentation in writing. There are always requirements.
Most often, drivers need to meet mileage or hours requirements.
For the program to benefit the company, drivers need to maintain a specific service level with customers. Oftentimes, a service component is often a part of the agreement. You may need to deliver on time and pick up on time, do a 24-hour pre-call, demonstrate good service, and more.
Safety is also often a big piece of the puzzle. Drivers should maintain a safe record without preventable or non-preventable accidents. To be in and stay in the program drivers may need to have dash cams in their trucks to monitor things like following distance and lane changes.
Sometimes drivers might have to turn in load paperwork within a specific timeframe. Some programs may disqualify drivers who refuse loads.
One week of ineligibility, depending on the program, could kick you off the program entirely.
Before you start with a company, make sure you talk to them about the program requirements and what happens if you don’t meet requirements more than once.
Companies should also be able to provide program information in writing and provide clear program requirements and expectations. Obtaining these in writing will help you to better understand the program requirements as well as help to keep your carrier accountable for the program.
Why Companies Have Introduced These Programs
Trucking companies periodically introduce these programs to both recruit and retain drivers. Companies are only successful as long as drivers are successful.
These programs, if temporary and not long-lasting, are designed to help drivers during the most volatile or financially insecure time they have while they transition to a new carrier. It provides a safety net while drivers adjust.
When you start a new company, there’s a lot to get used to. You’ll have to learn the freight network and customers, technology, safety program, pay program, and more. A guaranteed pay program allows you to focus on all that and not worry as much about your earnings.
This safety net encourages drivers to take a chance on a new company and it helps to set them up for long-term success with the company.
As an industry, we usually see companies introduce these programs when the market dips. Rates drop and paychecks go down with them. These pay programs provide some financial safety — especially for drivers seeking new, more stable companies to drive for.
On the other hand, when freight is good and drivers can make a lot of money, these programs tend to get phased out. As the market shifts again, companies may reintroduce them.
Pros and Cons of Guaranteed Pay Programs
Just like with any pay program, there are pros and cons.
Pros
The pro of guaranteed pay programs is that they create a lot of stability. Do you want a safety net? You have one. Want to know what to expect pay-wise? You do. Want to know the requirements of the program? You got them.
You’re able to make a sound financial decision about moving to a new carrier because you know exactly what you’ll be paid. There’s no gray area or sense of the unknown. The programs set the exact details in place for you.
It’s generally recommended you know what you’re getting paid before you jump from one company to another, and these programs give you that information.
In a market where drivers are struggling to make ends meet, guaranteed pay programs are a huge benefit.
Cons
These types of pay programs may not last forever and are subject to change, which can be quite a con. To suit the needs of the organization, customer, or fleet, carriers can change the pay program with little to no notice.
If the program is discontinued, there’s no telling if you’ll be grandfathered in and continue receiving guaranteed pay for a set duration or if you’ll be knocked off the program entirely.
For example, if you’re on week seven of a 12-week guaranteed pay program, some companies may let you finish out the program while some will discontinue it immediately.
To prevent any unexpected issues such as this, make sure you read the pay program details thoroughly and ask questions. Companies should provide this written information to all drivers.
An additional con is that you could be earning far more than the program pays you. For instance, if you’re guaranteed to make $1,500 per week — no more and no less — and you haul enough loads to earn $2,000, you’ll lose out on that $500. That isn’t necessarily a common occurrence, but it can happen.
Enjoy Great Pay at ATS
For drivers seeking reliable pay, guaranteed programs provide a lifeline, ensuring fair compensation regardless of market fluctuations. Drivers can make informed career decisions with confidence when companies offer guaranteed income, minimum pay thresholds, or steady salaries.
However, it's crucial to consider the potential cons that come with guaranteed pay programs. While they offer security, drivers must stay vigilant about program requirements and adaptability.
In essence, guaranteed pay programs symbolize the industry's commitment to supporting drivers — offering a safety net during transitions and market shifts.
ATS offers a pay program for our company drivers. All new specialized or van drivers receive a pay guaranteed for 12 weeks. Eligible van drivers are guaranteed to earn a minimum of $ 1,200 per week and eligible specialized drivers will gross at least $1,300 per week.
To learn more about each of our programs, visit our company van driver page or our company flatbed page.