RTO is fast becoming the new Voluntary Separation Program (VSP)—a cost-free shortcut to reduce headcount without offering severance. But there’s a fundamental flaw: the people leaving aren’t the ones you choose—they’re the ones with the most options.
Leaders like Elon Musk and Vivek Ramaswamy, tasked with reforming the civil service, might see RTO-driven attrition as a clever tool for headcount reduction. But do they realize it risks driving away the very talent needed to deliver the reforms they’ve championed?
Attrition Is a Blunt Instrument
The civil service, as nearly everyone agrees, is in desperate need of reform. In a world moving at unprecedented speed, government institutions are struggling to keep up with the demands of a rapidly changing society. Bureaucratic inefficiencies, outdated management practices, and a lack of performance-based accountability are well-documented problems. Add to that the inherent slow pace of change in large, entrenched systems, and it’s clear: reform isn’t just an option—it’s essential.
But reform isn’t just about cutting costs or headcount. It’s about fundamentally rethinking how the civil service attracts, retains, and empowers talent to meet the demands of a rapidly evolving world. That’s where reliance on return-to-office (RTO) mandates as a means to induce attrition falls apart.
If RTO is being used as a tool to provoke attrition, it’s a blunt instrument at best. It reduces headcount superficially but doesn’t address deeper systemic issues. Worse, RTO-driven attrition doesn’t just reduce headcount—it selectively shapes who remains in the workforce.
Who leaves? Employees with highly marketable skills, particularly those aligned with modern, flexible work environments, are the first to leave. These individuals prioritize autonomy, innovation, and adaptability—qualities essential for transforming outdated systems.
Who stays? Employees who are either unable or unwilling to pursue opportunities elsewhere. These individuals are often more comfortable with rigid structures and outdated practices—the very things transformation efforts aim to dismantle.
Transformation requires more than just fewer people. It requires the right people —employees equipped with the skills, mindset, and tools to lead change. Replacing skilled employees is expensive, often costing up to twice their annual salary, and disrupts institutional knowledge and morale. More critically, the loss of creative thinkers—those who drive new solutions—hinders the long-term progress of reform efforts. When combined with the damage to morale and trust caused by rigid mandates, RTO-driven attrition becomes a liability rather than a reform tool.
The RTO Paradox: Losing the Talent Needed for Reform
If Musk and Ramaswamy want their proposed reforms to succeed, they must align their workforce strategies with the realities of today’s job market. RTO-driven attrition can only work when paired with strong incentives to retain the very talent needed to drive transformation. Musk’s own organizations illustrate this paradox. Tesla and SpaceX attract highly skilled, innovative employees who accept demanding work environments because they are incentivized with meaningful projects, creative autonomy, and a sense of purpose.
But rigid RTO mandates, without comparable incentives, don’t work in environments that lack the allure of cutting-edge missions or transformative technologies. Civil service, competing for talent in a labor market increasingly defined by flexibility and autonomy, is ill-prepared to retain the type of employees who can drive meaningful change.
Shaping the Future of Work Through Real Reform
While Musk and Ramaswamy’s RTO policies highlight challenges in civil service, the same lessons apply across industries. RTO is currently being used in the private sector as a de facto VSP, where leaders risking the loss of high performers with options while retaining employees who are less mobile or motivated. If transformation is the goal, leaders—whether in government or private companies—must adopt strategies that align with today’s workforce realities and set the standard for the Future of Work.
For civil service, this means focusing on these key areas:
Purpose and Impact: Purpose and impact are powerful motivators, with employees increasingly seeking work that aligns with their values and allows them to make a difference. While many organizations struggle to create meaningful work, civil service has this advantage built-in, with its foundation rooted in addressing societal challenges and improving lives. Framing public service as a mission-driven career not only appeals to idealism but also aligns with the modern workforce’s desire for purpose, autonomy, and impact, positioning civil service as a model for organizations worldwide.
Technology and Continuous Learning: Career paths are no longer static, even in civil service. Employees know they may not retire with the same skills or roles they started with, making continuous development essential to staying relevant. By investing in cutting-edge tools and ongoing learning, civil service can not only fulfill its mission of improving society but also position itself as an attractive employer for individuals eager to grow, build skills, and make valuable connections. For these employees, civil service can serve as a dynamic launchpad for future career success.
Agile Organization: Removing bureaucracy for the public requires building a more flexible, agile organization—one that mirrors the adaptability demanded in the modern workplace. Achieving this is a Future of Work challenge in itself, requiring civil service to streamline outdated processes, flatten hierarchies, and foster a culture of accountability. Empowering employees with the tools and autonomy to deliver solutions efficiently—while staying within ethical and regulatory boundaries—ensures that civil service can respond quickly and effectively to societal needs.
Flexibility as a Standard: Flexibility cannot be a one-size-fits-all model. The needs and challenges of flexibility vary widely across people, roles, teams, and locations. Civil service can lead the way by moving beyond rigid policies focused on days in the office and instead prioritizing productivity, clearly defining success, and implementing robust performance metrics. By focusing on outcomes rather than arbitrary mandates, civil service can empower managers to create tailored flexibility solutions that meet the unique requirements of their teams and functions. This approach not only supports individual and team success but also attracts and retains innovative, high-performing talent.
Organizations, public or private, can’t afford to lose their best people when they need them most. If the goal is real transformation—whether in civil service or the private sector—leaders must embrace strategies that align with the realities of today’s workforce. RTO may seem like a quick fix, but it undermines the very essence of meaningful reform. Real change starts with people. Build a workplace where the right people want to stay, and transformation will follow.