Human Capital Case Study: Norma Rae

Can dissatisfied workers just pick up and go if they hate their job? We saw this typical employer response play out at the beginning of Norma Rae. Norma’s mother started having hearing problems in the middle of the factory workday. When Norma’s noticed the issue she immediately took her mother to the company doctor, who just dismissed the medical issue. After a brief exchange, the doctor stated that if the mother is having issues with her hearing she could just find another job. Frustrated, Norma replied “What other job in this town? This is the only job!” (“Norma Rae,” 1979) This appears to be the condition of many workers in the current economy. So in many cases, it does indeed appear unfair for companies to approach the issue like the doctor

Specialized skills are valuable within the company you are working for. For example, in my career, I managed a team of associates within a call center. These agents possessed a considerable amount of knowledge about company policies and processes. However, the problem with special human capital is that it would not be valuable in another firm. Even other insurance companies would have to retrain my associates to their own policies and procedures. General human capital skills can move amongst companies and increase the demand of the employee who holds these general skills. In the case of State Farm, the call center associates do not have the skills that the labor market is demanding. General human capital is valued within the marketplace and increases the demand for such labor accordingly. If you are a data scientist at a blue-chip company like Google, you will likely possess a tremendous amount of knowledge and skills that other employers in the marketplace are willing to pay good money for. If we are considering a worker, such as my associates, it would not be fair to tell them that they can just “simply get a job elsewhere.” I have literally seen this happen in my call centers, where employees get mentally and physically sick from the rigor of continued job rationalization and are told by upper management to find another job if they are unhappy. Sadly enough, I am in touch with some of those who have left and they are still having trouble finding permanent work. However, if you are an employee with valuable general human capital, it is fair to tell them to find another employer, given they will likely find another job and the employer could now fill the slot with someone that is a better