Forget Employee Costs -- Ventas' Real Wage Problem Is Contract Labor
Inflation is one of the big headline-grabbing stories right now. Employees around the country are asking for and getting salary increases. And that's if companies can actually find people to hire.
One area that's been particularly hard-hit on this front is senior housing. Here's why Ventas (NYSE: VTR) and other senior housing real estate investment trusts (REITs) could actually see salary expenses fall even as they raise wages for employees.
It's been hard for companies to find employees lately. That's fine for, say, a restaurant, which can run a little short-staffed. But it isn't OK for a nursing home, which has to have certain staffing levels to operate because of the type of care it provides. The same is true of even lesser levels of senior housing, given the needs of older residents. So, if you don't have enough staff, you have to make a choice.
Source Fool.com
