Contextualising HRM in the Digital Age: Local Government Responses to Technological Change in Australia

Grounded in socio‐technical systems (STS) theory, this paper investigates how HRM decision‐making balances technological integration with people‐centric concerns, including employee well‐being, skills development, and workforce resilience. Using a qualitative study design, the study draws on semi‐structured interviews with 23 senior council officers and document analysis of over 50 council reports and workforce strategies. The findings highlight complex layers of context, such as the specific characteristics of local councils (descriptive), the broader systems and structures they operate within (analytical), and the formal institutions and regulations they must follow (institutional), all of which influence HRM adaptation to technological changes. The study highlights how sector‐specific contextual conditions, such as public sector constraints, state‐level regulatory controls, complex governance systems, financial limitations, and urban–rural disparities, influence HRM responses. While these contextual factors often restrict organisational flexibility, they also function as catalysts for innovative HR practices focused on attraction, upskilling, and retention. This research contributes to a deeper understanding of how local governments (LGs) in Australia navigate workforce transformation amid technological change. It provides actionable insights for HR professionals seeking to align human capital development with emerging digital demands.