On-Call Pay Premiums and Expenses for Technical Employees

By Jeremy Greenup and Leigh Culpepper Jan 29, 2008
LIKE SAVE PRINT
Reuse Permissions

For technical employees who are required to remain on-call during off-duty hours, 70 pe​rcent of North American IT, technology and life science organizations provide them with supplemental compensation. Nearly all companies require their on-call technical employees to carry a mobile device, with most companies paying 100 percent of mobile device and service plan expenses, according to a recent Culpepper Pay Practices & Policies Survey.

On-Call Premiums for Hourly Technical Employees
Companies with hourly (non-exempt) technical employees typically pay overtime or an additional flat amount per week for time worked while on call.

    Table 1
    Premiums for Hourly On-Call Technical Employees

    Compensation Method

Percent of All Companies

Company Size
(# of Employees)

Up to 100

Over 100 to 1,000

Over 1,000

    Pay overtime for time worked while on-call

47%

20%

53%

49%

    Pay additional flat amount per week

40%

60%

40%

38%

    Pay additional flat amount per day

23%

0%

7%

32%

    Pay overtime for travel while on-call

12%

0%

0%

19%

    Pay additional flat amount per month

5%

20%

0%

5%

    Note: Percentages add up to over 100% since companies may have more than one compensation method.

Companies paying overtime for time worked while on call typically pay hourly technical employees at 1.5 times the standard hourly rate. Companies that pay additional flat amounts to hourly on-call employees report paying an average of $250 per week, $23 per weekday, $45 per weekend and $50 per holiday (U.S. dollars).

-------------------------------------------------------------
Overtime pay for time worked while on call
for hourly technical employees is typically
1.5 times the standard hourly rate.

-------------------------------------------------------------

On-Call Premiums for Salaried Technical Employees
For salaried (exempt) technical employees required to remain on call during off-duty hours, the most common practice is to pay an additional weekly or daily flat amount.

    Table 2
    Premiums for Salaried On-Call Technical Employees

    Compensation Method

Percent of All Companies

Company Size
(# of Employees)

Up to 100

Over 100 to 1,000

Over 1,000

    Pay additional flat amount per week

42%

50%

47%

37%

    Pay additional flat amount per day

25%

25%

11%

32%

    Pay additional flat amount per month

8%

8%

11%

7%

    Pay overtime for time worked while on-call

6%

8%

11%

2%

    Compensatory time-off for hours worked on-call

6%

0%

11%

5%

    Pay overtime for travel while on-call

3%

8%

5%

0%

    No additional compensation is provided

15%

8%

11%

20%

    Note: Percentages add up to over 100% since companies may have more than one compensation method.

    Companies paying additional flat amounts to salaried on-call employees report paying an average of $234 per week, $68 per weekday, $101 per weekend and $183 per holiday (in U.S. dollars).

Equipment and Service Plan Expenses for On-Call Technical Employees
Most companies require technical employees to carry a mobile device (e.g., BlackBerry, PDA, phone or beeper/pager) while on call.

Eighty-eight percent of companies provide on-call technical employees with mobile devices for use while on call and pay 100 percent of equipment-related expenses. Eighty-two percent of companies provide service plans for these mobile devices and pay 100 percent of the expense for these plans.

    Table 3
    Payment of Mobile Device Equipment and Service Plan Expenses for On-Call Technical Employees

    Payment of Mobile Device Equipment Expense

Percent of Companies

    Organization provides equipment and pays 100% of the expense

88%

    Employee purchases equipment and is 100% reimbursed

6%

    Employee purchases equipment and is partially reimbursed

3%

    Employee purchases equipment and is not reimbursed

3%

    Payment of Mobile Device Service Plan Expense

Percent of Companies

    Organization provides service plan and pays 100% of the expense

82%

    Employee purchases service plan and is 100% reimbursed

8%

    Employee purchases service plan and is partially reimbursed

7%

    Employee purchases service plan and is not reimbursed

3%

Jennifer Berthiaume is a research associate/editor at Culpepper and Associates Inc., which conducts worldwide salary surveys and provides benchmark data for compensation and employee benefit programs. Leigh Culpepper is president and CEO of the firm.

Reposted with permission

Source: Culpepper Pay Practices & Policies Surveys, January 2008.

www.culpepper.com

LIKE SAVE PRINT
Reuse Permissions

SHRM-CP/SHRM-SCP EXAM

The application deadline is October 21

Apply Today

Job Finder

Find an HR Job Near You

SPONSOR OFFERS

Find the Right Vendor for Your HR Needs

SHRM’s HR Vendor Directory contains over 3,200 companies

Search & Connect