Offlate there have been cases of downsizing and restructuring in the major startup companies, due to which a lot of leading players in the industry have laid off several employees. This sudden slump in the startup industry caused by funding crunch and intense pressure by investors to focus on profitability vis a vis growth has created an unstable market in terms of work stability specially in the startup environment. 

The current scenario has given rise to uncertainty and skepticism in the professional community on the volatility of startup work environment. With leading startup players revoking job offers as well as laying off employees, freshers as well as current executives are facing the brunt of a high pressure environment and are questioning the decisions made by top management which is directly  affecting their professional growth. 

Trust at workplace can takes weeks and even years to build, and in crucial situations like this it is imperative that companies take strategic actions to regain trust of the employees and maintain an upbeat work atmosphere. Take the recent example of Mr. Sachin Bansal one of the founding members and former CEO of Indian e-commerce giant, Flipkart. Mr. Sachin Bansal who stepped down from the position of CEO earlier this year made a bold confession recently that this decision was taken on account of his 'performance'. The key reason behind this admission was to share with the employees that  it is not only them who are suffering the consequences of business decisions gone wrong but even C-Level executives are facing the music. While some senior level executives shy away from the accountability by fleeing away and laying off only employees, this strategic move by Mr. Bansal is a strong example to tell their employees that even the key management's position gets risky due to the affect of downsizing. This move will not only win back their employees' trust and boost morale, but will also win the trust of the potential candidates who were willing to join these major startups but were hesitant to do so.

Below are the 5 key HR takeaways from Mr. Bansal’s bold admission which shows how leaders taking accountability can help regain the trust of the employees.

Admit you made a mistake

The first step to regain employee confidence is to be completely transparent with them. By admitting that you made a mistake and letting go of any excuse will help in regaining the trust of the employees. Show your employees that you are aware of your mistakes and you regret them. Be completely transparent with your employees. That way, employees will respect you honestly.

Walk the Talk

Instead of leading a team based on authority, C Level Executives should focus on leading by example. If the employees are facing troubles, listen to their problems. Take time to develop team confidence and share information on how individuals will benefit from team’s success.

Encourage employee feedback to make positive changes

It is important for the leaders to encourage employee feedback to make positive changes in the company. Listen to everything that’s being said, no matter how off-base or harsh it may sound. Use this feedback to lay the groundwork for the positive changes you want to adhere in the company.

One-on-one interactions with employees

Organizations should regularly have one-on-one interactions with the employees. Always ask for their feedback and give them a chance to be completely open and open. By doing so, the employees will see you as a fellow human instead of some administrative force.

Help and Support your employees

Leaders who go out of their way to help and support others means that they are interested in others’ success rather than their own. When employees feel that their leader cares and supports the employees by ensuring that they are on a path to success, they will go out of their way to ensure that the leader and the company is successful.