I've been on call for 20+ years. I've never gotten paid extra for it. I just figure it's baked into the normal paycheck. As long as everyone on the team is doing on call about the same amount, it doesn't really matter. At the end of the year, it usually works out pretty evenly.
> Scheduling. When I have been on call, it has always been one week at a time,
I agree with this one. At Netflix we tried a bunch of different schemes, going from just a few hours on call at a time to a week at a time. The week seemed to work out best for everyone.
> Escalation. There should always be an escalation path if there is a real crisis.
At Netflix, our escalation path was always the on-call engineer, me (the team lead), and then my manager and then their manager. It almost never got past the first engineer, and in the rare cases it did, pretty much everyone on the team was ok with getting a call at any time to help in a crisis, so usually we'd just call whoever would have the most relevant expertise for the current issue. Oftentimes another one of us was already on the call listening anyway. It rarely rolled up to me.
My point being, beyond the rigidity of one person being designated on call, if you really want it to work well you need to be flexible and trust that your team is made of competent people that you can rely on, and they need to be cool with getting a call when they aren't on call, assuming that they might call on you one day.