Being a Diesel Mechanic in 2024 is a great way to earn a living. It’s important to understand what value you bring to the table to ensure you are fairly compensated for your time and skills. Mechanics Hub has placed more Diesel Mechanics at full-time, direct hire opportunities than any other firm in North America, so we understand what matters when making this important decision.
Ensuring you’re equipped with the knowledge to effectively understand the value of your offer will help you make the right decision if you find yourself on the job market. Diesel Mechanic employers have a variety of compensation structures, and each come with a unique set of factors to consider.
Taking the time to evaluate your options will prevent lost time, job hopping, and will increase the chances of your next opportunity being a long-term fit.
In the Diesel Industry, we have seen 3 main pay structures for Diesel Mechanics: Hourly pay, Flat rate, and Salary. So, what’s the difference?
Hourly-Rate Structure:
This is the most common way that Diesel Mechanics are compensated. During a successful interview, the employer may extend an hourly rate offer which means that you would receive that pay rate, every hour you are working for your employer, regardless of your employer’s current workload. This is a great compensation structure for those looking for a steady income.
The other massive benefit to hourly pay is the ability to earn overtime! This is a critical aspect of your compensation and we’ve seen some mechanics enjoy upwards of $100K/yr of overtime in addition to their base pay. Typically, overtime is available after 40 hours of work per week or 8 hours a day, depending on your employer and is usually paid at 1.5x your hourly rate. In short, if you earn $40/hour, your OT rate would be $60/hour.
Flat-Rate Structure:
This is the most common pay structure in the automotive industry however, some Diesel Industry employers implement this structure for their teams. Flat-rate pay is directly related to your ability to effectively and accurately complete repairs relative to the “book time”. In short, if Work Order A is quoted at 2 hours (flat rate) however, you’re able to complete Work Order A in 1 hour, you are still paid for 2 hours of work. If you scale this up and complete 12 hours of work (according to book time) in 8 hours, you’ve saved 4 hours of time without losing any compensation.
This compensation structure works great for capable mechanics who gain employment with organized shops with a steady flow of work. However, it’s important to consider a reality where you might not be able to complete repairs within the book time or the shop doesn’t have a steady flow of work. This could significantly impact your ability to cover your bottom line.
Salary Structure:
Salary is more common at the management level; however, we’ve seen Mechanics accept salary positions with no complaints. Similar to hourly, you will still receive a consistent paycheck regardless of your efficiency and your employer’s workload. The biggest thing to note when accepting a salaried position is that you are typically not eligible for any overtime, regardless of how many hours you worked that week.
Additional Pay Incentives:
Shift Differential: Some employers extend a shift differential in addition to your hourly rate. This is usually associated with the shift you accept and we see it commonly for Mechanics accepting positions on the 2nd (afternoons) or 3rd (nights) shift. For example, you could be extended $40/hour + $2/hour shift differential (totalling $42/hr) for accepting the 2nd shift. If you are looking for a 2nd or 3rd shift opportunity, it’s important to ask if this is available in addition to your base pay.
Sign-On Bonus: Due to the scarcity of qualified Diesel Mechanics in today’s market, some employers will extend a sign on bonus in addition to your accepted compensation structure. This could be anywhere from an additional $1,000 – $10,000. Most companies will break up the bonus over your first year, with pre-determined dates on when you’re eligible to receive that money however, it’s still extra compensation and important to be aware of.
Profit Sharing: Another great compensation structure some employers offer is profit sharing. This is a percentage of the profits generated either from the company or a department (parts for example) and is divided up amongst the team who is eligible. This is typically paid out at the end of your employer’s fiscal year after the numbers have been assessed.
Work Perks
When looking for a new employment opportunity money/hourly rate is usually the most discussed topic when negotiating a job offer. However, there are other things to consider that provide value outside of your pay:
Company Vehicle: Receiving a company vehicle is a huge perk and not something to be overlooked. If you are receiving a competitive job offer with a company truck, consider the money you will save not having to use your vehicle to commute to work daily. Although you will not receive extra money, since you have a company vehicle, you won’t be driving your personal vehicle as much reducing your costs on fuel, maintenance, and vehicle depreciation. If your prospective employer is offering a company vehicle, it’s important to understand the approved usage of that vehicle and whether or not you’re able to bring it home after a day’s work.
Boot and Tool Allowance: Boots and tools aren’t cheap, and they take a beating in this trade. Some companies will cover the cost for new boots and tools which could result in thousands of dollars saved over the course of your career. Some companies will tack on extra pay to cover this, and others will reimburse you once you present a receipt for the boots/tools purchased. This is a great perk and not something to be undervalued or overlooked.
Company Training: This is a massive incentive that every Diesel Mechanic needs to ask their prospective employer. With the advancement of technology in the Diesel Industry, things are always changing and advancing. Diesel Trucks have multiple computers that all communicate with each other sending 1000s of datapoints to the ECM as the operator rolls down the road. It’s not if a Diesel Truck will break down but when. Taking advantage of company training allows you to develop your skillet, understand how to efficiency and accurately diagnose repairs, and be more valuable to your employer. Furthermore, if your training gives you a certification, this is a great perk that will allow you to negotiate a higher rate because of your new skill (with proof to back it up). Factory training is always in demand and employers are willing to pay a premium for those who hold them.
PTO (Paid Time-Off): work life balance is important for a heathy employment relationship. No one likes to burnout and knowing you can take time off to decompress is valuable. Every company is different but ensure this is discussed during your interview and can be a great negotiation tool if the pay rate is fixed.
Benefits: Outside of your compensation, benefits is one of the biggest conversation topics when we help candidates find new employment. Everyone’s situation is unique so your need for benefits may vary from others on the same shop floor. Medical, Dental, and Vision are the standard benefits most Mechanics are looking for however, 401K (with company match), Profit sharing, Life insurance, and Disability could also be on the table, so it’s important to ask. When discussing benefits, it’s also valuable to know who the coverage is with, when do benefits kick in, what the cost is to you, and if it covers yourself only or your entire family.
How Do I Know I’m Getting A Good Deal?
Selecting your employer is one of the most important decisions you will make as it determines your ability to earn and establish a solid financial foundation. Additionally, you will be spending at least 8 hours a day with that employer which will have a significant impact on your overall happiness so selecting the right opportunity is critical. Considering the above points will put you ahead of most however, if you’re looking for assistance finding your next opportunity or have further questions about these topics, Mechanics Hub is on standby and able to assist. Did I mention that Mechanics Hub is completely free to any Diesel Mechanic within North America? Finding new employment can be stressful and time consuming and even more so if you pick the wrong opportunity. Eliminate the guesswork and get in touch with a dedicated Diesel Recruitment Specialist today to see why 1000s of Mechanics use Mechanics Hub whenever they need to find quality employment!
