Challenges Faced by Former Federal Executives in Transitioning to Private Sector

Andy’s experience is one that resonates with many executives leaving federal service.

After departing from the federal civil service this year, Andy (a pseudonym) thought he’d landed an ideal job in the private sector—working with a large company in a familiar field, where opportunities seemed to be flourishing.

However, less than a year into the role, Andy finds himself among the increasing number of ex-federal employees consulting from home.

“There was likely a mismatch in expectations from both the company and me. I believed my background and skills would be utilized at a policy level, but the company was seeking someone more technical for tactical help,” Andy shared, asking for confidentiality while discussing his experience with federal contractors. “Often, employees in these private firms don’t fully grasp how to leverage the insights of former government executives.”

Unfortunately, Andy’s situation is likely to mirror that of many federal executives in the coming year.

Anyone browsing LinkedIn recently could hardly miss the wave of executive exits from federal service. Whether due to retirement, participating in deferred resignation programs, or general attrition, the trend of leaving federal roles appears more pronounced than ever.

Consider the statistics.

The Office of Personnel Management forecasts a reduction of 551 Senior Executive Service members by 2026. The number of SES positions dipped from 7,887 in August 2024 to 7,336 by January 8, 2026.

The pipeline for GS-14 and GS-15 talent, essential for SES roles, has also witnessed considerable declines this year.

Notably, the reduced number of GS-14 employees follows several years of growth. In 2019, there were 117,600 GS-14 positions, but that number is projected to drop by 8,000 between 2024 and 2025, effectively undoing gains made in the previous year.

Shifts at the GS-15 level show less drastic changes, but they still reflect a slow decline in growth rates since 2021.

Overall, the reductions in senior leadership align with a broader trend observed last year, with an expected 219,000 fewer federal employees in 2025 compared to 2024.

Interestingly, while the median age of federal staff remains at 47, the percentage eligible for retirement has lowered from 15% to 13.5%. Agencies like the Small Business Administration and NASA have more than 25% of their workforce eligible for retirement.

In 2025, 105,858 individuals retired from federal roles, with the Department of Defense recording the highest number at 31,689. Other departments like Veterans Affairs, Homeland Security, and Health and Human Services also saw significant retirements.

Concerns Over the Future Leadership Pipeline

Concerns regarding a potential wave of retirements are not new, as employee groups have been sounding alarms for years. However, the combination of retirements, employees opting for deferred resignations, layoffs, and voluntary retirements has intensified worries about the future pool of federal managers.

Michelle Sutter, a board member of the Senior Executives Association and former government employee, expressed concern over the decline in both SES members and GS-14 and GS-15 positions.

“A recurring theme in my discussions with peers is that executive-level staff are often doing the work of three or four people, which has never been seen before. This overwhelming responsibility detracts from their ability to focus on mission objectives,” Sutter stated in an interview. “This stress complicates their capacity to serve effectively, often leading to burnout.”

She noted that GS-14 and GS-15 level employees also face similar pressures.

Although these employees might have more chances to step into acting roles to prepare for SES transitions, they still grapple with burnout, limited training, and ongoing changes.

According to Sutter, the pathway for senior executives to transition into SES has narrowed significantly.

“We need to focus on developing our senior executives. Our success in the upcoming year hinges on stable leadership and smart use of acting or permanent roles, plus serious investments in executive growth,” she remarked. “Supporting career executives will be crucial for their continuity, performance, and leadership skills in the wake of transitions.”

She also welcomed OPM’s new training initiatives and hopes for adequate funding to allow staff to take advantage of these opportunities.

Advice for Executives Entering the Private Sector

The private sector may pose similar challenges for former federal executives transitioning away from government roles. Andy’s story and others highlight key considerations for those entering industry.

“The job market seems tough these days, though there are plenty of roles available. It’s quite a buyer’s market,” Andy commented. “People should prioritize finding the right fit. But for those in need of employment, that’s easier said than done. Ideally, you should pay attention to that fit. Conversations with other former government executives revealed that many shared similar challenges—private sector staff often struggle to utilize the expertise of those from government backgrounds.”

Tim Thiel, CEO and founder of Bellwether Group and a former NSA employee, shared insights on LinkedIn about what federal leaders should keep in mind when moving to the private sector.

According to him, most departures stem not from a lack of skill but from an expectation mismatch. “Management expects strategic input while companies look for immediate results,” he explained. “In government, authority derives from official roles; in the private sector, it is rooted in revenue and growth.”

Thiel also emphasized the importance of reputation; it can open doors but doesn’t ensure job security. “Successful former leaders learn the business, tie their success to results, and don’t mistake respect for immunity,” he noted.

“The biggest mistake I see is negotiating titles without understanding the business. If you’re unclear on how the company generates revenue or where it incurs losses, you’re at a disadvantage. Avoid vague roles without clear success metrics.”

For Andy, now consulting independently, the experience has been eye-opening. He doesn’t blame himself or the company if things don’t go as planned, but he offers a piece of advice: “Trust your gut. I had a feeling that things weren’t quite right.”