Why Funeral Homes Should Outsource HR

PRemployer on April 19, 2021

Why Funeral Homes Should Outsource HR

As a funeral home director, you run a small business with a relatively small number of employees. It’s manageable initially, but your HR burden increases as you grow. For many owners, handling it themselves or handing it over to, say, the receptionist is the first instinct. Unfortunately, this places some roadblocks in the way of your further growth. Spending hours on payroll is not the best use of your time since it takes away from running your business. Instead, you can pursue HR outsourcing as a potential answer so you can continue to grow your business and focus on what you do best.

Here are some reasons you should consider outsourcing your HR:

Prevent Wasted Expertise

You and your workers have a unique set of skills. Running a funeral home requires a specific combination of tact, compassion, and resilience. Professional  morticians have to do basic bereavement counseling, run a business, and have the scientific skills to care for bodies properly. You have to understand and respect multiple funerary customs, religious and otherwise, working with clergy when needed. Even driving a hearse is a skill that has to be developed and learned. Even your receptionist requires the necessary skills to deal with distraught people handling a very hard time.

It makes no sense to have people with these unique professional skills handling the routine matters of HR. If you can't yet afford a full-time HR specialist, outsourcing ensures that you and your workers are free to spend your time and effort on doing what matters most. Having the owner or employees handle these burdens distract from your business, which lowers your quality of service and strains you financially.

Retain Peace of Mind

Labor compliance is strict for every industry, and it’s particularly challenging for funeral homes. The  proposed changes to the salary limits for exempt employees might have made it hard for funeral home license holders to retain exempt status by no longer recognizing professional certification for morticians who don't have a bachelor's degree. However, it's also possible that funeral homes qualify as  exempt retail or service establishments

Trying to keep track of all of these requirements while dealing with bereaved families who can't agree on funeral details can be overwhelming. Sometimes just keeping up with them can be a full-time job on its own. By outsourcing HR, all of this is handled by professionals for whom it is their job. They will make fewer mistakes, spend less time on the work, and overall do a better job. You also won't be frustrated with the distraction or interruption of these details, resulting in improved employee morale. Additionally, a good outsourcing partner will make sure there are no payroll errors that affect your workers, like a late or incorrect check.

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Access Improved Benefits

Getting the best candidates in the industry requires an excellent benefits package. Still, most funeral homes are too small to negotiate good health insurance rates, let alone retirement and other benefits. It's not that independent funeral homes don't want to offer these benefits, but that they simply can't afford to. Costs are only going to increase, and even one claim can send premiums entirely beyond your reach. A PEO reduces your costs by helping you with employee wellness and assistance programs. An EAP can be particularly valuable for funeral homes, where workers often deal with high stress and issues that stem from the  constant presence of death. The ability to access proper counseling can be vital to mortuary workers.

Working with a particular kind of HR outsourcing partner known as a Professional Employer Organization gives you access to a master benefits plan. This plan saves you money because it includes all of their clients’ employees, leveraging economies of scale to get much cheaper premiums and reduce claim-related hikes. They also have the knowledge and experience to negotiate a good deal.

That means that you can get better benefits than you could afford on your own, which helps attract and retain talent and reduce employee stress. 

Focus on Growth

All of this means you can focus on running the best business you can and finding customers. It cuts the time spent on administrative burdens, so you can focus instead on, growing and marketing your business, making your funeral home an excellent place to work. Anything that takes you away from this is an opportunity cost and a net negative.

You can also focus on all the reasons that got you into this business in the first place, like helping families and loved ones deal with their loss, celebrate their loved one's life, and start the process of healing. It helps build your company culture and keeps everyone on the same page. You can spend your time on employee training, on slowing down and giving families more of your time, and on improving your skills. With a trusted HR outsourcing solution, you don't have to worry about any of these things and focus on where you are most needed.

The only HR outsourcing solution that can provide improved benefits and total HR compliance is a professional employer organization. PEOs control costs and help you run a better business. To find out more, download "How a PEO Could Lower Costs.”

How a PEO Could Lower Costs Related to Your 401(k), Healthcare, and Other Employee Benefits

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