I had the opportunity to work with a client funeral home in a small town that has started to feel the pain of an increase in cremations and steady decline in traditional services.
Until a couple of years ago, the popularity of cremation had avoided this small town consisting of a large elderly population. However, the population has been evolving, with older folks passing away and many of their children moving away to larger metropolitan areas. This particular funeral home has been a dominant force for many years, but is now seeing the majority of the 125 families per year examining cremation options more often than not.
Well, the popularity of cremation is only going to increase and I truly believe we are reaching a point where traditional funeral services really are becoming a thing of the past. I also think it is easier to make adjustments in larger cities, but what about the small town, independent funeral homes?
At first glance, I noticed a problem. 125 calls per year, a father and son team of owners, combined with three full-time funeral directors, one provisional apprentice, two independent trade embalmers (called by the funeral directors who often prefer not to embalm). Also, the funeral directors are paid extra wages for night calls and working visitations. The three full-time funeral directors are paid above $40,000 per year (excluding night calls) and the provisional is paid $28,500 (excluding night calls). The father and son are naturally drawing salaries. The funeral directors, according to the owners, often draw the extra wages even when using a trade embalmer, as they often decide to “assist.” And during slow times, without any other locations, you have the employees sitting around the funeral home.
Solutions:
A retired funeral director (who maintains his license) was looking for p/t, hourly work, primarily to have something to do. We brought him in for removals and to accompany provisional apprentice on house calls. He also likes to assist with funerals and work an occasional visitation. Next, we eliminated one funeral director/embalmer position. Provisional pay rate increased, while dissolving previous after-hours pay rates. Remaining funeral director schedules revised, allowing for more time off (which is what they had been wanting). Negotiated with trade embalmers for after-hours embalming duties, whenever necessary.I also revised some of the pricing and service features, which I will keep to myself.
Many of the corporate funeral homes have done a tremendous job in adjusting to the economic conditions. For the small-town funeral homes, the struggles can be even more difficult. While not always a popular choice in the eyes of employees, if handled correctly, I think outsourcing can be a victory for everyone involved.
