THE founder of one of Scotland’s growing band of employee-owned trusts (EOTs) has praised its business model, which has led to productivity increasing by more than a tenth and turnover rising by 23% to £2.7 million.
Husband and wife team Simon Poole and Cath Brookes founded North Berwick-based Jerba Campervans in 2006, and it became fully-owned by its 15-strong workforce in January.
The company is recognised by Volkswagen as a registered vehicle body builder, and it specialises in luxury conversions of the VW Transporter T6, creating discreet and stylish homes on wheels.
Jerba is one of more than 100 EOTs in Scotland – around a third of the total throughout the UK.
Poole, its managing director, said employee ownership made sense on a number of levels for entrepreneurs and business owners considering their exit strategy.
“It should be the confirmation that you are set-up financially to create your new venture, or free to skip off on a happy, bountiful retirement,” he told The National.
“In reality it is often a stressful time, with the potential to pose fraught negotiations and deep moral dilemmas.
“For one thing, there is a loyalty issue. If you want to seek the solace of a buy-out from a larger competitor, then you also know at the back of your mind, it will mean your employees’ roles become uncertain.
“There will likely be efficiency savings – if not immediately, then shortly after – where teams will be merged and jobs could be lost or cut down.
“It is encouraging therefore that increasing numbers of business owners are instead looking to their staff as the future of their businesses.
“And while employee ownership may not be a panacea, it makes sense on so many levels, especially when it comes to the cold hard financial incentives, such as tax breaks and increased certainty.”
He said that in an EOT efficiency savings came from within, rather than through a merging of departments.
“Productivity is everything to employee-owned businesses, where staff feel pride and take ownership of decisions that directly affect them,” said Poole.
“While these benefits, along with the financial incentives, are naturally welcome, they aren’t the real reason we would strongly recommend this model of business succession.
“What really makes us passionate about it has been our own experience of the emotional connection. The team feel security through self-actualisation. They take ownership of mistakes and feel pride in achievements.”
At the same time, Jerba’s clients took some delight in finding out that the firm was owned by its employees. Poole said there would be no problems when he and Brookes decided to hand over the reins of the company to the remaining EOT members.
He added: “What’s more, the support has never been better with the Scottish Enterprise and the Scottish Government hugely supportive of businesses that opt to become employee-owned; they are there to guide you on the way. If you are considering your exit and employee ownership is on the table, of course you should weigh up the facts, the financial pros and cons.
“But whatever you do, don’t undervalue the strength of the positive feelings behind leaving your business to the team that helped you to build it in the first place.”
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