Five Challenges Facing Funeral Homes

January 31, 2023

To work well with funeral service professionals, we think it’s essential to understand their working worlds. Here are some of the challenges we’ve been learning about through original research, publications,  and conference presentations.

Losses to traditional sources of revenue

Funeral homes are facing losses in revenue per client due to increasing rates of cremation & reduced demand for embalming, public services, and merchandise . The American cremation rate was 55.9% in 2020 and is expected to reach 78.4% by 2040. [1] The Canadian cremation rate was 74.8% in 2020 and is expected to grow to 87.9% by 2040. [2] Likewise,  it is also now easier than ever for consumers to compare pricing and shop online for merchandise traditionally sold by funeral homes (e.g., caskets, urns). Decreases in ancillary product sales (which makes up a significant share of funeral home revenue) has further reduced revenue per client. The Canadian funeral home industry saw an overall profit loss of 1.3% from 2015 to 2020. [3] Whereas the American funeral home industry saw a marginal profit gain of 0.3% and a revenue loss of 0.8% from 2016 to 2021. [4]

Staffing shortages and burn-out

The funeral profession is facing staffing shortages, resulting in over-commitment and burn-out among employees. More people are retiring from the workforce than entering it. [5] Much like in other industries, COVID-19 has served to further worsen staff shortages. [6] Combined with rising death rates and increasing training requirements, these staffing shortages leave funeral service professionals stretched thin . [7] This is having a disproportionate impact on women in the profession, who show higher levels of anxiety, depression and job stress compared to men. [8] Continuing education courses on overcommitment, stress management, and self-care evidence institutional aims to protect the well-being of funeral service professionals. [9][10]

A need to stand out

High competition means funeral homes need to work hard to stand out. Heightened competition with low cost funeral providers, independent crematories and online retailers has negatively impacted funeral home profitability. [11][12] From funeral home to funeral home, competition is largely based on reputation, price and location. [13] Maintaining competitive pricing and a positive reputation is especially critical in communities that host more than one funeral home. In light of rising competition and revenue pressures, marketing has become more important over the past five years. [14]

Increasing wage costs in a labor-intensive profession

The funeral profession is labor-intensive, with wages making up the largest expense for the industry, absorbing about 29.5% of total revenue . [15] Whereas capital expenses have stabilized over the past few years, wage costs have risen. [16] In this environment, funeral home owners are finding it difficult to increase staffing levels. [17] Dealing with an excessive number of estate-related questions takes up precious staff time. To ensure profitability, funeral homes must have effective controls on these labor-related costs. [18]

Families requesting help that exceeds their professional scope

Funeral service providers receive requests for support that transcend the scope of the profession. Previous literature has found that funeral professionals are prone to feeling a lack of control in their work environments, especially given their unpredictable and demanding schedules. [19][20] This is especially common in smaller firms. [21] In our interviews, funeral service providers described the importance of setting boundaries on their professional responsibilities while doing what they could to support the family, whether that meant referring clients to other professionals or admitting instances where they didn't have an answer to a legal, financial, or grief-related question. In essence, setting boundaries was described as an adaptive strategy for coping with a fluid work schedule and role.

How can Cadence help?

Cadence pairs an online platform with compassion, expert support to help families navigate the logistical challenges they face after losing a loved one . The service compliments funeral home aftercare programs by ensuring families have the information, tools and support they need to take care of the steps that come next. Cadence offers assistance with: government notifications and benefits, subscription and account closures, insurance and pension claims, identity theft protection, and probate and tax guidance.

How it works: During an optional phone intake, an advisor explains the Cadence process and determines the level of support the client requires. After answering a short questionnaire, the client gets access to the auto-populated forms, important resources and a customized, "how-to" guide on the Cadence platform. Clients move through the guide at their own pace and if they need extra help, they can reach out to a Cadence advisor at any time.

This solution supports seamless client handoff, easy case management and on-demand support for funeral service professionals. For busy funeral homes that are struggling with staffing shortages, Cadence’s automated process can reduce staff time spent on aftercare, paperwork, and estate-related questions. By automating the paperwork and providing ongoing, personalized guidance , Cadence gives providers back time to focus on supporting their families. Families who use Cadence thank their funeral homes for the robust, personalized and ongoing support by becoming lifelong clients and leaving positive reviews . Cadence educates clients about the value of pre-arrangements and links them back to your team when they are ready, helping you increase pre-need sales .

To learn more about Cadence’s services for funeral homes, click here .

Why Cadence Exists: A Founder’s Story

February 9, 2026
When my mom died, I left the funeral home with a checklist. It didn’t feel helpful. It felt crushing. I remember sitting at my kitchen table afterward, crying, staring at a list of things I was suddenly responsible for—forms to fill out, accounts to close, tasks to complete. I searched online for guidance, typed my mom’s date of death into one form after another, and felt the weight of it all pressing down at a moment when I was least able to cope. What struck me most wasn’t just the grief. It was the absence of a clear path forward. Instead of structure or support, I found broken, fragmented systems—and an overwhelming amount of responsibility placed on people in the rawest moments of their lives At the time, I assumed this was just my experience. Discovering a Shared Reality Over the years, that assumption proved wrong. Through volunteering in hospice, talking with families, and working alongside care providers, I began to hear the same story again and again. The confusion. The overwhelm. The feeling of being left alone to navigate a complicated web of tasks after loss. What I experienced wasn’t the exception. It was the norm And that realization stayed with me. A Better Way After Loss The period after a death is one of the most vulnerable times in a person’s life. Yet it’s also when we ask families to become administrators, coordinators, and decision-makers—often without guidance, clarity, or continuity of care. That didn’t feel right. Cadence exists because that time after loss deserves more structure, more clarity, and more care than it’s been given That belief is the foundation of everything we do. Built for Families, With Funeral Homes We built Cadence for families—but we work hand in hand with funeral homes. Why? Because funeral homes are often the last place families feel truly supported , and at the same time, the first place where responsibility begins Funeral professionals show up for families at an incredibly meaningful moment. Cadence is designed to extend that care beyond the service itself—helping families navigate what comes next with confidence instead of confusion. Doing This Together Cadence is not about replacing human connection. It’s about strengthening it. We’re here to do this work together—with funeral homes, care providers, and families—so no one feels abandoned once the ceremony ends. Supporting families long after the service isn’t an extra. It’s the work. And that’s why I built Cadence. About Rachel Drew, CEO & Founder of Cadence Rachel Drew is the Founder and CEO of Cadence. She founded the company after recognizing a critical gap in support for families following a death. With experience working alongside hospice providers, care teams, and funeral professionals, Rachel leads Cadence with a focus on extending care beyond the service and strengthening the role funeral homes play in supporting families long-term.

Identity Theft Awareness Week: Tips for Lowering the Hidden Risk After a Death

By Cydney Schwartz • January 27, 2026
When someone dies, their identity doesn’t automatically disappear. And for families, that reality can create risks they never expected to manage. In the weeks and months that follow a death, families are juggling grief, paperwork, and a long list of unfamiliar responsibilities. During this time, a person’s identity is often still active across financial institutions, government agencies, and digital platforms, quietly creating an overlooked window of vulnerability. This risk is commonly referred to as deceased identity theft or “ghosting.” While it’s rarely talked about, consumer protection agencies consistently warn that it’s a real and ongoing issue—one that can add unnecessary stress and financial harm to families already navigating loss. This Identity Theft Awareness Week we’re helping families understand the risks after a loss, and how to limit them.
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