In marking the end of his tenure, he ended his valedictory speech on Monday noting he had "copped criticism", but earlier made light of his connection to a right-wing think tank that put him under scrutiny after he sent emails to the group while using a work address.

Mr Lloyd, who began as public service commissioner under the Abbott government in 2014, lamented the state of workplace laws in farewelling senior public servants at an Institute of Public Administration Australia function at the National Gallery.

He also took aim at political correctness and said the nation's traditional scepticism about authority had eroded.

"We are deluged at every turn by do-gooders telling us what we should eat and drink, how we should exercise, how we should think, how we should spend our money, what type of dwelling we should live in," Mr Lloyd said.

"It seems every day is a world day for either genuine or mindless causes for good.

"This concerns me. I think there is a danger the diversity of views and opinions that go to good policy advice could be stifled by pervasive group think dictated by what is politically correct.

"The Canberra setting can be particularly vulnerable to this."

Mr Lloyd urged public service leaders to be vigilant about "group think", and to express views and pursue ideas that may challenge accepted opinions.

"Just as importantly, support others that have the courage to stand up and question the prevailing orthodoxy," he said.

Mr Lloyd, a member of the think tank the Institute of Public Affairs, began his address with a joke about his connection to the free market group and the scrutiny directed towards the link by Labor senators led by Penny Wong.

"I thank the IPAA for organising this event. I have to be careful with the various institutes I engage with. If I omitted the second A, I may make Senator Wong more unhappy."

He later said he had a fulfilling career and had stayed true to his values, but referred to an inquiry into complaints about his conduct.

The allegation raised in one complaint has not been described publicly. Another alleged Mr Lloyd breached a code of conduct by using his public service commission email address in October when writing to the head of the IPA following questioning by senators about his links to the group.

Mr Lloyd, who will resign on Wednesday, noted in closing his speech he had copped criticism.

"Some recently that still has not been brought to conclusion following a process that I have found most unsatisfactory," he said.

The former Australian Building and Construction Commission head also warned against abolishing the construction industry watchdog, scrapped by the Gillard government and re-established under Prime Minister Malcolm Turnbull.

He said his time leading the commission showed him that the construction industry had been "ruthless and corrupt".

"Without the ABCC many of the industry participants would once again prove they are singular in their disregard for the law and the use of brutal and unfair practices."

Mr Lloyd, part of the Victorian Department of Business and Employment under the Kennett government, described it as one of the best organised and most reformist administrations he had worked for.

He was later Western Australian Labour Relations Department head and Victoria's Red Tape Commissioner.

Mr Lloyd on Monday also took aim at unions and said that the workplace relations system was too regulated and inflexible.

"This is a risk that will only be amplified if the Australian Council of Trade Unions agenda of more and deep regulation gains traction. In that case employment prospects would be damaged."

He said clarity of expression, purpose, role and responsibility was often missing from how the Australian Public Service went about its business, adding he would like this to be a focus of the major federal bureaucracy review led by former Telstra chief executive David Thodey.

Mr Lloyd, whose term was due to expire in December 2019, abruptly announced in June he would resign but denied the timing was influenced by a possible investigation.

The Australian Public Service Commission said then he had "for some time" considered departing before his term as commissioner ended, and Mr Lloyd later told senators he had felt it was time to resign after a long career.

Under public service legislation there is no power to investigate Mr Lloyd once he departs the commission.

Mr Turnbull's chief of staff Peter Woolcott will take over as commissioner on Thursday.