As a federal employee I observe on a daily basis extensive federal waste in the form of allowing federal workers to produce at a much lower rate than their private counterparts. Federal workers on the whole underperform and underproduce on a daily basis due to there being little to no pay difference between the top worker and the worst worker in a given department, on top of the near impossible task of getting rid of poor workers.
We need to promote efficiency by rewarding those that reduce costs by being more productive. Why not share cost reductions with workers and departments to promote efficiency? When someone retires, share 50% of their income with the rest of the department if they do not hire someone else. If the dept refuses available funding, share 10% with that dept.