What Are the HRM Challenges Linked to 4IR Technologies Facing Rural and Regional LGs?

For rural and regional LGs, the application of 4IR technologies and its workforce impacts require meeting the challenges associated with resource limitations, locational disadvantages, recruitment and retention challenges, managing an ageing workforce, and upskilling staff.

Participant O discussed the impact of increasing demand for technical skills linked to 4IR technologies, stating, “Technical skills are in demand, driving up wages. The salaries for those jobs are increasing… What that means sometimes for us is that we cannot afford to hire that role compared to what they are paid in private enterprise. So, we have to find alternative ways to get the work done. This creates a skill shortage for us”.

The disparity between private sector salaries and the salaries that LGs can offer hampers the ability to compete for technology-intensive positions. Participant C explained, “Council is not keeping up with the technology change, and we do not have the specialised in-house skills to do some of these technical roles…”. This financial disparity limits councils’ ability to invest in both technology and to acquire the talent required for its successful implementation.

Recruitment remains a persistent challenge for all LGs, particularly in attracting professionals with technology-related skills. The challenge is amplified by geographic isolation, limited career growth opportunities, and limited infrastructure and social resources in regional and rural areas. Participant A noted, “It’s difficult to entice younger professionals to the region when they can earn more and have better prospects in the city. We simply can’t match the salary and career progression opportunities available in larger cities”.

Participant D described the struggle to compete for professional and skilled staff with state governments and the private sector, where higher salaries and greater funding are available. Other participants highlighted the reluctance of skilled professionals to relocate to rural areas, emphasising that this was a significant barrier to attracting qualified staff. Document 9 outlined the challenges that regional and rural LGs face in attracting qualified applicants for critical roles, such as IT staff, recreation planners, and construction coordinators.

LGs face challenges in providing adequate training and upskilling opportunities to help employees adapt to technological change. Budget constraints and limited access to specialised education and training institutions, particularly in rural areas, place limitations on workforce skill development. A key challenge is enhancing employees’ digital skills to ensure the effective use of new systems. Participant I noted, “Not everyone is literate regarding technology”, highlighting the variability in staff members’ technological proficiency.

Participant C raised concerns about this issue, stating, “We still have a big gap in understanding how people are using the systems effectively and updating their processes so that they can use these new systems to the best of their capabilities”. Geographic separation between staff members, especially across rural areas, reduces the inclusivity of digital literacy initiatives. Participant H observed, “Not all staff members are in the same building; local councils have several outdoor staff members. It becomes challenging to keep all staff members in the loop of the ongoing changes and to support them during the change”.

An ageing workforce presents a significant challenge for rural and regional LGs, particularly in adapting to 4IR technologies. The participants highlighted that ageing demographics create HR challenges as many employees approach retirement. The participants noted that older employees often struggle to acquire the skills necessary to operate technologically advanced systems, as these technologies differ significantly from the processes they have relied on in the past. Participant A observed, “Older staff members often find it difficult to transition to new technologies because the systems are so different from what they have been using for years”. This is further compounded by a reluctance of some older employees to embrace new technologies, particularly as they near retirement. Participant K explained, “For many older employees, there is a hesitance to fully engage with new technologies because they feel that they will not be in the workforce long enough to benefit from learning them”.

These findings underscore the complexity of managing HR challenges linked to technological change in rural and regional local councils. Addressing these issues requires targeted strategies to attract, develop, and retain talent, while ensuring employees can navigate the evolving technological landscape.