McKinlay Kidd reports increased staff engagement after ownership change

A decision by Aito operator McKinlay Kidd to become employee owned this summer has already led to changes in staff behaviour, say the former owners.

Co-founders Heather McKinlay and Robert Kidd told the 2024 Aito Overseas Conference in Valladolid, Spain, that research showed companies which become employee-owned enjoy increased productivity levels of 10% to 15% as a result of a change in staff behaviour and interest in the business.

“We have started to see the beginnings of that,” said former director Kidd, now a consultant to the UK and Ireland specialist, which has just under 30 employees.

He said staff were increasingly keen to know about the financial health and future strategy of the company at a deeper level than previously.

“We are seeing more questions coming in about the direction of the business. The business is communicating more detail [to staff] on its figures, not just margins but profits. All the team want to know what the profits are,” he said.

Zoe Davidson, who became managing director in 2023, agreed: “We are talking more about our margins, targets, growth and profitability. It is in everyone’s best interests for the company to do better.”

Kidd added: “Although staff have known for a while, it’s only just becoming more concrete. You can see them thinking more strategically and it’s lifted their spirits. That’s what we hoped for, and we are hoping the business will thrive.”

The owners began looking at ways to exit their business a year ago and said the “John Lewis approach” had been encouraged under Scottish legislation.

Kidd explained: “It is a proper sale; you have to get HMRC involved to show it has not been done for tax avoidance. As sellers you take more risk; the business now owes us money and we are dependent on the business continuing to trade well so we get our full pay-out but the reward is that you are exempt from Capital Gains Tax; it’s a strong incentive.

“We had options to sell but this felt right for us as individuals. We had a great team and this was right for them, it was what they deserved.”

Kidd said he was surprised more travel company owners had not chosen employee ownership, but noted: “I think more will go down this route.”