Edge-connected configurations of squares are a common model for modular robots in two dimensions. A well-established way to reconfigure such modular robots are so-called sliding moves. Dumitrescu and Pach [Graphs and Combinatorics, 2006] proved that it is always possible to reconfigure one edge-connected configuration of $n$ squares into any other using at most $O(n^2)$ sliding moves, while keeping the configuration connected at all times. For certain configurations $\Omega(n^2)$ sliding moves are necessary. However, significantly fewer moves may be sufficient. In this paper we present a novel input-sensitive in-place algorithm which requires only $O(\bar{P} n)$ sliding moves to transform one configuration into the other, where $\bar{P}$ is the maximum perimeter of the respective bounding boxes. Our Gather&Compact algorithm is built on the basic principle that well-connected components of modular robots can be transformed efficiently. Hence we iteratively increase the connectivity within a configuration, to finally arrive at a single solid $xy$-monotone component. We implemented Gather&Compact and compared it experimentally to the in-place modification by Moreno and Sacrist\'an [EuroCG 2020] of the Dumitrescu and Pach algorithm (MSDP). Our experiments show that Gather&Compact consistently outperforms MSDP by a significant margin, on all types of square configurations.