So tell your staff: "I'm giving you as much leeway as I can, but this agency isn't going to change overnight. Before we push for more changes, I need you to help me show management that productivity can remain high, even improve, under the concessions you have so far."
To your boss: "As long as the work is being done correctly and on time, I'd like to grant my workers appropriate flexibility to help them perform their best. If you notice performance slipping, please let me know."
Of course, your boss has the final say. But you might point out that if Millie were to leave, her replacement would come from a pool of people increasingly like her. And when the job-market pendulum swings back in young workers' favor, they aren't likely to stick with an agency that hasn't kept up with the times. For that matter, neither will older workers who want what the kids are having.
Karla L. Miller writes an advice column on navigating the modern workplace. Each week she will answer one or two questions from readers. Miller has written for and edited tax publications for 16 years, most recently for the accounting firm KPMG's Washington National Tax office. You can find her on Twitter, @KarlaAtWork.