Carriers need a consistent definition of non-driver compensation so they can understand support-staff costs, compare staffing levels with peers, and avoid mixing office, operations, and maintenance labor in the same accounts.
Significance of Standardized Non-Driver Compensation Data
Non-driver wages and benefits are a major operating expense, but comparisons become unreliable when carriers classify employees differently. Standardization supports both internal management and external benchmarking by defining which positions belong in the category and how shared costs should be allocated.
FreightMarks shows non-driver wages and benefits generally ranging from $0.12 to $0.27 per mile, or approximately 4% to 13% of revenue. The range reflects differences in fleet size, service model, automation, geographic footprint, and the degree to which work is centralized or outsourced.
Non-Driver Wages and Benefits Defined
The category includes compensation for employees in:
- Operations and dispatch.
- Sales and marketing.
- Recruiting.
- Safety and risk management.
- Information systems.
- Finance and administration.
- Brokerage and logistics.
Maintenance employees should remain in the maintenance wages and overhead category. One exception is personnel whose primary role is coordinating on-road breakdowns; because that work supports fleet operations rather than shop production, it should be classified with operations.
Benefits and payroll-related expenses should include employer-paid health, dental, vision, life, and disability insurance; retirement contributions; payroll taxes such as FUTA, SUTA, EI, and CPP; and workers' compensation.
FreightMarks also uses driver-to-non-driver ratios to help carriers evaluate staffing structure. Average ratios cited in the data are 5.3 to 1 for dry van, 5.1 to 1 for refrigerated, and 4.6 to 1 for flatbed operations.
Aligning the GL With FreightMarks Standards
Map GL Accounts
Relevant wage, benefit, and payroll-tax accounts should be mapped to FreightMarks Data Category 9.8. The carrier should review job functions rather than relying only on department names, particularly where employees serve more than one operating group.
Segment Costs Clearly
Company fleet, owner-operator, lease-purchase, brokerage, and shared-services functions should be separated where practical. This prevents support costs for one activity from being absorbed by another and provides a clearer view of each segment's economics.
Shared-service departments require an equitable allocation. A carrier may use expense, revenue, headcount, transaction volume, or another operating measure that reflects how the service is consumed.
Implement Allocation Methods
Ratio-based allocation is preferred when an account serves multiple groups. Headcount, payroll dollars, tractor count, or revenue can provide a defensible basis, depending on the expense.
For workers' compensation, separate driver and non-driver accounts are ideal. If the GL does not provide that distinction, a 90% driver and 10% non-driver allocation is a commonly used starting point because driver exposure typically represents the larger share of the risk.
A fixed percentage can be used when better data is unavailable, but the basis should be documented and reviewed as operations change.
Maintain Consistency and Regular Review
Accounting staff should use the same definitions each month and update mappings when positions, departments, or business segments change. A consistent method produces more useful trends than a detailed method that is applied irregularly.
Key Implementation Checklist
Carriers standardizing non-driver compensation should:
- Define the positions included in non-driver wages and benefits.
- Keep maintenance labor in its own category.
- Separate wages, payroll taxes, benefits, and bonuses where possible.
- Map accounts to FreightMarks Data Category 9.8.
- Allocate shared-service costs using a supportable operational ratio.
- Document any fixed-percentage assumptions.
- Compare driver-to-non-driver staffing ratios by operating type.
- Review mappings and allocation logic regularly.
Optimize Support Costs With Better Data
Standardized non-driver compensation data helps a carrier determine whether its support structure fits the size and complexity of the operation. It also makes peer comparisons more meaningful by ensuring that the same types of labor and benefits are being measured on both sides of the benchmark.