The article forms theoretical approaches to the essence of competitiveness of employees in the sphere of trade services. The interpretation of the concept of "competition" suggested by many foreign and Ukrainian scientists are organized according to three approaches: functional-purpose oriented, behavioral and structural-logical. These approaches to the interpretation of competition can be used in studies of competitive relationships on the market, and their choice directly depends on the goals and objectives of the analysis. The interpretation of the essence of competition suggested by representatives of the Ukrainian scientific school of competitiveness in the field of labor has some differences. Theoretical approaches to defining the concept of "competitiveness of employees" are generalized. The paper determines that the peculiarities of approaches to understanding the competition of employees are related to the fact that people, carriers of a certain labor potential with inherent characteristics of the level of knowledge, skills, experience, work ability, mobility, activity and more rather than products and services are the object of economic competition in the labor market in the system of social and labor relations. The author suggests his definition of competition of trade services employees as their competition for obtaining and reproducing the best working conditions in the interests of realizing labor potential in the process of customer service and obtaining socio-economic and moral satisfaction from their work, development of competences (knowledge, skills). The article proves that formation and maintenance of competitiveness of employees requires complex scientific research, development and implementation of consistent public socio-economic policy, investing in continuous educational and professional development with the participation of social partners.