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By providing opportunities for him/her to demonstrate competency within their skill set(s).
By empowering the individual to contribute their idea's AND have them become integral to a solution.
By not judging, blaming or otherwise calling him/her out on said self-confidence concern.
By allowing him/her the opportunity to demonstrate or teach back either an impactful part of their function or role AND/OR having them teach something they are passionate about.
By appropriate praise and recognition.
By assigning him/her an impactful task.
By coaching and mentoring them (personal and professional development - key leadership and management principles).
The employee should see that you place all trust in him and make him feel that he is an inspiration to the organization and to each person with the same strategy
By providing adequate training and then trusting them to do their jobs well allows them know you have faith in them and that they should have faith in themselves.
Facilitate them through counseling and learning sessions. Helps them through increasing their self-awareness and EQ. The assessment will help them to build and gain confidence.
Give them independent decision power according to there level of responsibility and evaluate there decisions result after regular interval.