Effective Recruitment and Employee Development Tools in the Context of Labor Shortages in the Service Sector

The labor shortage in the food service, retail, and hospitality industries is becoming an increasingly pressing issue, complicating business growth. High employee turnover significantly raises costs associated with recruitment, training, and adaptation, which is particularly challenging for small and medium–sized enterprises. This article examines the causes of the labor shortage, including demographic decline, seasonality, competition for talent, and evolving employee expectations.Special attention is given to effective methods of recruitment and employee retention. The study explores non–material motivation tools, such as individual development plans, career planning, and workBlife balance support. Streamlining the hiring process through automation, HR branding, and the cultivation of corporate culture are highlighted as key strategies for reducing turnover.Furthermore, the importance of a systematic approach to employee training and development is emphasized, contributing to increased engagement and service quality. The article concludes that a comprehensive approach to personnel management is essential for enhancing companies’ competitiveness in the context of labor shortages.