Are we really short-staffed, or ethnically short-sighted?

Here's a puzzle for you: the hospitality industry needs new recruits; but as you read this, 30,000 jobs remain unfilled in London alone - at every level. By 2010, the Hospitality Training Foundation believes that the industry will create 300,000 more jobs.

The Mayday Group's annual contract catering survey shows 70% of caterers are short-staffed, while Department for Education & Employment statistics show that more than two million people work in catering - 7.5% of the working-age employed population.

In short, there are opportunities for everyone at every level in the catering industry, regardless of background.

So, why is it that 41% of men from ethnic backgrounds aged 16 to 24 are unemployed, compared with 15% of white males? Why is it that, across all ages, the unemployment rate for ethnic minority men is three times higher than for white men and a staggering four times higher than for white women?

The answer: lack of training, understanding and inclusion.

Last year Mayday was asked to take part in some Government research, alongside companies such as Asda, Lloyds TSB, Sainsbury's and BT, into the benefits of having an equal opportunities policy.

I can't pretend that having the entire company thoroughly audited by a representative from the National Institute of Economic & Social Research on behalf of the Commission for Racial Equality was an especially relaxing experience. But it was enlightening, and I was relieved and surprised at the extent to which our business really has benefited from our positive policies in this area.

Employing staff from a range of backgrounds actually improves management and employee relations. It really does enhance service to customers, increases sales and improves marketing. But it has to be done with a commitment to make it work.

When we introduced our equal opportunities policy around 1993, we carried out some analysis and found that more than 80% of the people we turned down for temporary work were from ethnic minorities. The reasons cited were lack of food and customer knowledge or general life skills.

Additionally, more than 70% of temps we dismissed were from ethnic minorities. The main reason was usually reports about poor attitude.

Our research showed that many African people believe eye contact to be socially unacceptable. But non-ethnic people were misinterpreting intended politeness as surly behaviour.

We designed a training course to look at things like being a good employee, creating a good impression, and confidence building techniques, as well as more straightforward skills training.

In the first year, we increased our temporary workforce by 30%. Retention rates improved by 14% and word-of-mouth applicants increased to more than 60%.

This is not about a piece of paper on a notice board. Our staff have the power to turn down discriminatory business and receive training to deal with such requests. Far from resenting lost business, the staff are proud to work for an equal opportunities champion.

I know this has contributed to staff recruitment and retention. People like to work for someone who will stand up for good practice despite risking the loss of business.

We have been invited to participate in the Leadership Challenge as a result of our practices. This invites business leaders to take the lead in promoting racial equality. Those who sign up to it are personally committing to raise the profile of these issues.

Everyone who can influence the hospitality industry should be involved in the Leadership Challenge. Already supported by influential leaders within our industry, such as Charles Allen of Granada and Whitbread chief executive David Thomas, the challenge is championed by Employment Minister Margaret Hodge.

It is simply not acceptable for people to be excluded from our industry because of their ethnic origins.

If you know there is discrimination within any part of your operation, be a leader - challenge it. Include, rather than exclude, people from ethnic minorities.

Most of all, sign up to the Leadership Challenge - today.

Call 020 7828 7022 now for more information.

Jane Sunley is managing director of the Mayday Group