2014 Research and Information Update

Research & Information• As the trusted leader and worldwide resource for the

funeral service profession, NFDA provides data and information on trends, statistics, issues, and best practices across all facets of death care to inform and educate members, other stakeholders, and the public. To accomplish this goal, NFDA conducts both primary and secondary research on vital topics and issues.

• We have extensive, credible, ongoing research programs on our members, the profession/industry and consumers.

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Industry Trends• Current death rate (annual deaths per 1000) is currently at 8.3 and

is projected to be 9.7 by the year 2050• Job Outlook - Employment of funeral service workers is projected to

grow 12 percent from 2012 to 2022, about as fast as the average for all occupations.

• Current cremation rate is 43.2% and is projected to be 48.8% by 2017 and 58.9% by 2025.

• Funeral home revenue gains are forecast to be moderate and increase at an average annual rate of just 1.6% over the next 5 years to reach $17.2 billion in 2018.

• In 2012, 53.4% of mortuary science graduates were female, 76% were Caucasian, 15.8% were African American, and 5.5% were Hispanic American.

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2013 NFDA Funeral Director Expectation Study

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Funeral Director Expectations• This was a follow-up study of funeral home owners and managers to

measure their workplace expectations of new graduates. By comparing the results of this study to the Mortuary Science Student Expectation Survey, we are able to better understand whether job seeker and employer expectations are indeed congruent, realistic, achievable – and, when they may not be – how the gaps in expectations can be bridged.

• A random sample of NFDA members received an email invitation to complete the online expectations survey. Of the 2,541 potential respondents, a total of 259 members completed the survey. Results for all respondents are projectable within a range of +6.0% (with 95% confidence)

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Funeral Director ExpectationsState of the Funeral Service Job Market

•In the past 24 months, funeral service has followed the national trend for small businesses, reporting minimal increases in hiring over the past 2 years overall. Twenty-two percent of funeral homes reported increasing the number of licensed staff while 17.2% reported decreasing the number of licensed staff.

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Funeral Director Expectations

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• Funeral service employers are more optimistic about the next year compared to other small businesses. Thirty-two percent of funeral homes plan to increase the number of licensed staff in the next 12 months. Three percent plan to decrease the number of licensed staff. This is better than the national outlook where 16% of small businesses plan to add jobs in the next 12 months.

Funeral Director Expectations

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• Just over half of the employers surveyed reported difficulty finding skilled employees.

Funeral Director Expectations

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• Students expect to make 19% more than employers intend to pay (over a $7,500 difference). However, students expect to work longer work weeks than employers expect them to work (45+ versus 40+ hours per week). Students also expect to do more funeral related tasks than employers intend to assign to them. This is a possible reason for the difference in expectations.

Funeral Director Expectations

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• Approximately 40% of employers either somewhat disagree (29.1%) or strongly disagree (10.9%) that students are well prepared for their first funeral home position.

Funeral Director Expectations

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• The top suggested changes to be made to mortuary school requirements include improved communications skills, appearance/demeanor, arrangement/directing skills, and more hands-on experience or internships.

2013 NFDA Hospice Study

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NFDA Hospice Study

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• NFDA and the National Hospice and Palliative Care Organization (NHPCO) developed a survey to measure member perspectives on how they currently perceive each other, to better understand how members currently work together, and see where these relationships can be improved.

• NHPCO also sent a similar survey to its members; the results of both studies were compared in order to assess similarities and differences between these two groups of professionals. Below is the data from the NFDA study.

• A survey was emailed to 1,896 NFDA members. A total of 234 members completed the online survey, for a final response rate of 12.3%. Results for all respondents are projectable within a range of +6.3% (with 95% confidence).

NFDA Hospice Study

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Over one-third of respondents (36.6%) stated that 26% or more calls come from decedents who were under hospice care at the time of their death.

NFDA Hospice Study

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Most responding funeral directors (68.7%) report having an excellent or very good relationship with local hospice organizations. Only 7.2% classify their relationship as either fair or poor.

NFDA Hospice Study

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• Firms that have an excellent or very good relationship with hospice organizations are more likely to:

o Have good communication and a good relationship with hospice staff.

o Report mutual respect and understanding of each other’s jobs.

o Respond promptly to each other and families at the time of a death.

o Be involved with hospice organizations by offering tours of their funeral homes to hospice personnel, touring a local hospice facility, participating in joint activities, and offering joint educational programs.

 

NFDA Hospice Study

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• Firms that have a fair or poor relationship with hospice organizations are more likely to:

o Report that hospice personnel often provide poor or misinformation about funerals to families.

o Claim that hospice personnel promote one funeral home over another, promote one form of disposition over another, promote direct cremation, promote immediate burial, and promote low-cost providers.

o State there is a lack of communication with hospice organizations.

 

NFDA Hospice Study• Respondent suggestions for improving relationships with hospice

organizations include:

 o Improve communication between hospice personnel and funeral

directors.o Educate hospice personnel on the job responsibilities of funeral

directors.o Train hospice personnel to not offer advice to families about

funerals.o Get more involved with local hospice organizations by having

regular meetings and offering co-sponsored events/programs.

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NFDA Hospice Study

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• Approximately half of the respondents stated either yes or sometimes that local hospice organizations promote one funeral home over another (60.3%), promote one form of disposition over another (47.3%), promote direct cremation (43.4%), or promote low-cost providers (57.2%).

• Respondents were least likely to report that hospice organizations promote immediate burial (4.6%).

NFDA Hospice Study

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• Forty-one percent of respondents stated they do not participate in any activities with local hospice organizations.

NFDA Hospice Study

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• Only a small percentage of funeral homes partner/work with local hospice organizations (less than 12%).

2014 NFDA Consumer Awareness and Perceptions Study

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Consumer Study

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• Objectives/Methodology : – Measure consumer awareness and perceptions of funerals and funeral

services to help NFDA members improve the quality of service they provide to families.

– Track changes in awareness and perceptions since 2012.

– Learn more about consumer attitudes toward prearranging, prepaying, and their awareness of the “Have the Talk of a Lifetime” campaign.

– Study was conducted April 16 to April 17, 2014

– Survey invitations were emailed to an online consumer panel consisting of Americans age 40 and older.

– 1,055 completed surveys (a 39.5% response rate).

– Results for all respondents are projectable within a range of +3.1% (with 95% confidence). It should be noted that consumers who participate in online panels are typically high Internet users, have higher income and higher education levels.

Consumers• Almost all respondents felt it was either very important (69.7%) or

somewhat important (24.6%) to communicate their funeral plans/final wishes to their family members.

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Consumers

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• 73.2% of respondents have talked either a little or in-depth about their own funeral plans and 63.1% have had these conversations about their family’s funeral plans.

Consumers

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• Only 12.5% of respondents claimed they have heard or are familiar with the Have the Talk of a Lifetime ad campaign.

Consumers

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• 58.9% of respondents who saw the Have the Talk of a Lifetime campaign said it encouraged them to talk to their family about memorialization on some level.

Consumers

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• Over half of respondents said they would encourage their loved ones to plan a memorial ceremony to recognize their passage. This was a significant increase compared to 2013.

Consumers

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• Of the respondents who stated they would discourage a memorial ceremony, their top reasons were they simply don’t want one/isn’t necessary, it is too expensive, they want to be cremated, and they just want something short/simple.

Consumers

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Consumers

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Almost half of the respondents (44.3%) felt religion is very important. This statistic has declined slightly over the past three years.

Consumers

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42.8% feel it’s either very or somewhat important to have the body present at a funeral service; 57.2% feel it is either not very important or not at all important to have the body present. The importance of having a body present has been decreasing over the past three years.

Consumers

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• The most important items respondents want included in their own funeral or a funeral for a loved one were a gathering of family and friends, to honor the wishes or prearrangements of a loved one, and to have a life celebration with an uplifting atmosphere. Respondents also wanted a personalized music and a service, ceremony, or tribute to the deceased.

Consumers

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• Main reasons for selecting a funeral home were they already knew the funeral director, respondents’ previous experience at the funeral home, the funeral home location, and the funeral home’s reputation.

Consumers

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• The most desired qualities when choosing a funeral director are being honest and trustworthy, being caring, compassionate and sympathetic, and being sensitive to the family’s budget.

NFDA is here to help you!• Need information? Give us a call first.• Our resources:

– Extensive supply of NFDA sponsored research on consumers, funeral directors, and the funeral service industry

– Extensive supply of secondary research studies– Howard C. Raether Library– Affiliated funeral service associations are entitled to

one free hour of research assistance annually.– Customized research studies (additional charges

apply)

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Thank YouNFDA is the worldwide source of expertise and professional resources for all facets of funeral service. Through education, information and advocacy, NFDA is dedicated to supporting members in their mission to provide families with meaningful end-of-life services at the highest levels of excellence and integrity.

NFDA is the world's leading funeral service association, serving 19,175 individual members who represent more than 9,900 funeral homes in the United States and internationally. For more information, please contact 1-800-228-6332. 

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