Government should think of recruiting people only for a short period (5 years) for a short service . This recruitment should take people only fresh graduates or ones with less that 3 years of experience. After the 5 years or service people should be let go and they can now join a private organization as a 5 year experienced candidate. But in case they decide they can stay a couple more years not more than that. This period is only to assist them to be in job until they find a private job.
There could be multiple benefits of this arrangement. The first I can think of is that government will have fresh/young graduates rather than the ageing old staff. Do away with retirement benefits and hence saving Crores of pension burden on the government. Freshers should be recruited so this would take care jobs for graduates.
For senior posts again people can be recruited back who have experience more than 15 yrs or so.