Close Menu
    Facebook X (Twitter) Instagram
    • Our Story
    • Partner with us
    • Reach Us
    • Career
    Subscribe Newsletter
    HR KathaHR Katha
    • Exclusive
      • Exclusive Features
      • Perspectives
      • Friday Features
      • herSTORY
      • Case-In-Point
      • Point Of View
      • Research
      • HR Pops
      • Dialogue
      • Movement
      • Profile
      • Beyond Work
      • Rising Star
      • By Invitation
    • News
      • Global HR News
      • Compensation & Benefits
      • Diversity
      • Events
      • Gen Y
      • Hiring & Firing
      • HR & Labour Laws
      • Learning & Development
      • Merger & Acquisition
      • Performance Management & Productivity
      • Talent Management
      • Tools & Technology
      • Work-Life Balance
    • Special
      • HR Forecast 2026
      • Cover Story
      • Editorial
      • HR Forecast 2024
      • HR Forecast 2023
      • HR Forecast 2022
      • HR Forecast 2021
      • HR Forecast 2020
      • HR Forecast 2019
      • New Age Learning
      • Coaching and Training
      • Learn-Engage-Transform
    • Magazine
    • Reports
      • Whitepaper
        • HR Forecast 2024 e-mag
        • Future-proofing Manufacturing Through Digital Transformation
        • Employee Healthcare & Wellness Benefits: A Guide for Indian MSMEs
        • Build a Future Ready Organisation For The Road Ahead
        • Employee Experience Strategy
        • HRKatha 2019 Forecast
        • Decoding and Driving Employee Engagement
        • One Platform, Infinite Possibilities
      • Survey Reports
        • Happiness at Work
        • Upskilling for Jobs of the Future
        • The Labour Code 2020
    • Conferences
      • Leadership Summit 2025
      • Rising Star Leadership Awards
      • HRKatha Futurecast
      • Automation.NXT
      • The Great HR Debate
    • HR Jobs
    WhatsApp LinkedIn X (Twitter) Facebook Instagram
    HR KathaHR Katha
    zoha
    Home»Exclusive Features»Firing over feedback: Yes Madam’s ethical collapse
    Exclusive Features

    Firing over feedback: Yes Madam’s ethical collapse

    Breaching trust and weaponising feedback, Yes Madam’s actions highlight the perils of prioritising short-term efficiency over long-term ethics
    mmBy Radhika Sharma | HRKathaDecember 10, 2024Updated:December 10, 20244 Mins Read27030 Views
    Share LinkedIn Twitter Facebook WhatsApp
    Yes Madam
    Share
    LinkedIn Twitter Facebook WhatsApp

    The internet was abuzz on Monday with a story as shocking as it was bizarre. Yes Madam, a salon-at-home startup founded in 2016, allegedly fired over a hundred employees after they reported feeling stressed in a company-conducted survey designed to gauge workplace well-being. Rather than addressing the underlying causes of stress, the company reportedly weaponised the survey responses to single out employees deemed ‘problematic’.

    Yes Madam, which competes with Urban Company and others in the home-service sector, had previously secured funding from high-profile investors on Shark Tank India. However, this incident highlights the ethical pitfalls that even innovative startups can stumble into when governance and empathy are absent.

    Employee surveys are meant to identify organisational stressors and improve workplace conditions, not to punish honesty. Confidentiality is their cornerstone, fostering an environment where employees feel safe to share feedback. Breaching this trust not only undermines the survey’s purpose but sets a dangerous precedent.

    “Many startups lack the processes needed to uphold ethical norms. Firing employees based on a stress survey not only violates these norms but showcases a lack of understanding of how to build a sustainable enterprise.”

    Nihar Ghosh, senior HR leader

    Praveer Priyadarshi, a senior HR leader, condemns the company’s actions: “The first principle of any survey is ensuring confidentiality and using feedback for corrective actions, not retaliation.”

    Instead of fostering a culture of improvement, Yes Madam turned feedback into a weapon. Employees who were honest about their stress levels found themselves out of a job, a decision that damages morale and undermines trust within the organisation.

    Startups often operate in fast-paced, high-pressure environments, but that does not excuse unethical practices. Governance structures are essential for holding leadership accountable and ensuring decisions align with organisational values. Unfortunately, startups like Yes Madam frequently lack the maturity to uphold these standards.

    “Many startups lack the processes needed to uphold ethical norms,” says Nihar Ghosh, another senior HR leader. “Firing employees based on a stress survey not only violates these norms but showcases a lack of understanding of how to build a sustainable enterprise,” he adds.

    “The first principle of any survey is ensuring confidentiality and using feedback for corrective actions, not retaliation.”

    Praveer Priyadarshi,  senior HR leader

    Without robust governance, even well-meaning initiatives can spiral into reckless decisions. The Yes Madam case illustrates how an absence of oversight can transform a potentially positive exercise—gathering feedback—into an unethical act that harms employees and damages the organisation’s reputation.

    Firing employees for reporting stress is both shortsighted and counterproductive. Stress is often a symptom of systemic issues, such as poor management, excessive workloads, or inadequate resources. Instead of addressing these root causes, Yes Madam chose a path that perpetuates the problem.

    “Any organisation worth its salt should use feedback to identify and address workplace stressors rather than penalise employees for speaking out.”

    Ramesh Shankar S, a seasoned HR leader

    “Any organisation worth its salt should use feedback to identify and address workplace stressors rather than penalise employees for speaking out,” argues Ramesh Shankar S, a seasoned HR leader.

    By ignoring the systemic issues that contribute to stress, the company risks a ripple effect among the remaining workforce. Employees may feel insecure, leading to higher attrition, reduced morale, and a toxic workplace culture.

    Leadership maturity is crucial in navigating feedback and implementing solutions. Yes Madam’s approach reflects a retaliatory culture rather than one focused on improvement. Surveys are tools for growth, not instruments of punishment.

    “This decision is blasphemous and unbecoming of HR and management,” says Shankar. “It highlights an immature understanding of how to manage human capital effectively.”

    Such actions not only hurt employee morale internally but also tarnish the company’s external reputation. Potential recruits may view Yes Madam as a hostile employer, making it harder to attract top talent.

    The Yes Madam incident serves as a stark warning for startups and established companies alike. Ethical lapses, particularly those involving employees’ well-being, can have long-term consequences on trust, reputation, and business sustainability.

    “The very act of firing individuals who trusted the company with sensitive information contradicts the purpose of employee surveys,” Ghosh points out. Organisations must recognise that their success is tied to their people.

    Surveys should be tools for identifying problems and fostering improvement, not punitive measures. Priyadarshi stresses this point: “This decision demonstrates a fundamental misunderstanding of effective people-management practices. Ethical leadership involves more than compliance—it requires a commitment to employee welfare.”

    To prevent such missteps, companies must adopt governance frameworks that ensure transparency, accountability, and ethical decision-making. Addressing systemic issues, investing in leadership maturity, and fostering a culture of trust are essential steps toward building resilient and thriving workplaces.

    Ultimately, success lies in embracing empathy and ethics as core principles. Anything less is not only unsustainable but also a betrayal of the very people who drive an organisation forward.

    Employee Employee happiness Employee survey employee wellbeing employer Feedback firing over feedback Human Resources LEAD stress management well-being Workforce Workplace Yes Madam
    Share. LinkedIn Twitter Facebook WhatsApp
    mm
    Radhika Sharma | HRKatha

    Radhika is a commerce graduate with a curious mind and an adaptable spirit. A quick learner by nature, she thrives on exploring new ideas and embracing challenges. When she’s not chasing the latest news or trends, you’ll likely find her lost in a book or discovering a new favourite at her go-to Asian eatery. She also have a soft spot for Asian dramas—they’re her perfect escape after a busy day.

    Leave A Reply Cancel Reply

    Related Posts

    74% of India’s educated women take career breaks — and motherhood is only part of the story

    March 11, 2026

    HRForecast 2026: Skills mobility will become FMCG’s core capability – Tarun NP Varma, CHRO, Tata Consumer Products

    March 10, 2026

    Vedanta Aluminium deploys all-women team to run Odisha refinery

    March 10, 2026

    India, Finland explore stronger cooperation in skills and workforce mobility

    March 10, 2026
    Editorial

    When AI companies turn HR into their testing ground

    When a company builds artificial intelligence, its own workforce becomes the most visible proof. If…

    Sam Altman says listening to old people is a mistake; he’s half right

    When Sam Altman declared that “listening to old people is the biggest mistake young people…

    EDITOR'S PICKS

    74% of India’s educated women take career breaks — and motherhood is only part of the story

    March 11, 2026

    HRForecast 2026: Skills mobility will become FMCG’s core capability – Tarun NP Varma, CHRO, Tata Consumer Products

    March 10, 2026

    Why building women’s leadership pipelines remains difficult

    March 10, 2026

    Capability DNA: The genetic code of organisational capability

    March 10, 2026
    Latest Post

    74% of India’s educated women take career breaks — and motherhood is only part of the story

    Research March 11, 2026

    Three out of four educated women in India step away from their careers at some…

    HRForecast 2026: Skills mobility will become FMCG’s core capability – Tarun NP Varma, CHRO, Tata Consumer Products

    HR Forecast 2026 March 10, 2026

    A supply disruption hits a key ingredient market. A regulatory shift alters sourcing requirements. A…

    Vedanta Aluminium deploys all-women team to run Odisha refinery

    News March 10, 2026

    Vedanta Aluminium has deployed an all-women team to operate the Distributed Control System (DCS) at…

    India, Finland explore stronger cooperation in skills and workforce mobility

    News March 10, 2026

    Jayant Chaudhary, India’s Minister of State (Independent Charge) for Skill Development and Entrepreneurship, held a…

    Asia's No.1 HR Platform

    Facebook X (Twitter) Instagram LinkedIn WhatsApp Bluesky
    • Our Story
    • Partner with us
    • Career
    • Reach Us
    • Exclusive Features
    • Cover Story
    • Editorial
    • Dive into the Future of Work: Download HRForecast 2024 Now!
    © 2026 HRKatha.com
    • Disclaimer
    • Refunds & Cancellation Policy
    • Terms of Service

    Type above and press Enter to search. Press Esc to cancel.