Work out on call compensation instantly with clear inputs, formula shown and shareable results.
On-call compensation usually has two parts: a standby allowance for carrying the pager and an hourly rate for work actually performed out of hours. Modelling the call-out component at roughly a third of an hour per standby day reflects typical page volumes, and makes the point that reducing alert noise reduces cost directly as well as improving retention.
On-call cost
standby days = shifts x shift length; standby pay = standby days x daily rate; call-out pay = standby days x hours worked per day x hourly rate
Practice varies, but time off in lieu is generally better for recovery after a disturbed night, and many teams offer both.
It can, which is why some organisations charge the on-call cost to the owning team's budget. Making noise expensive to the people who can fix it aligns the incentives.