How to write an employee reference
Most employers regularly receive requests for references from previous employees, and producing a purposeful reference letter can be invaluable for former employees and their career progression. In this article, we're exploring the ins and outs of a well-written employee reference letter and why it matters.
One-third (31%) of employees are planning to look for a new job in 2023, while research from Gartner suggests just 25% of employees are confident about their career at their current organisation. There are still more vacancies than jobseekers at present, and it is a candidate’s market, so a great reference letter can be the difference between someone getting the role they want and it going to someone else.
In simple terms, a good employee reference letter can help workers secure a position that fits their skills and experience while advancing their career.
What is an employee reference letter?
An employee reference letter is essentially an endorsement of a candidate’s skills and experience. McKinsey asserts 70% of frontline employees have applied for career advancement opportunities with their current employer or different companies, and all of these employees will have needed a good reference from their previous employer to find a suitable new role.
A good employee reference letter will give a candid picture of the individual you’re endorsing, from their character to any achievements or qualifications gained while in your employment.
Why is a reference letter important?
Many aspects come together to create a hiring company’s picture of a candidate. Their application and interview performance matter, but so do the thoughts of their previous employers. A reference letter is the most effective way for a hiring manager to access candid information about a potential new hire’s character and approach to the workplace.
Committing to providing honest references should be part of your organisation’s commitment to its people and integral to succession planning within the company. It also helps build trust, as employees can rely upon their employers to support their career growth and aspirations, even if that means moving to a different role.
An employee reference letter can also form part of your formal approach to offboarding employees, alongside their exit interview, setting them up for a successful start in their new role. It also helps build your employer brand as a company with professionalism at its heart. Understanding your employees may need to move on and supporting them in this decision reflects positively on your organisation’s reputation. A good reference also shows ex-employees you are open to them returning in the future. Happier employees are up to 20% more productive than unhappy employees, and providing positive references and supporting those ready to move on can play a vital role in maintaining employee happiness and work ethic.
How to write an employee reference letter?
Follow the steps outlined below to prepare comprehensive reference letters that meet candidate and employer demands whilst enhancing your brand reputation.
Consider if you can produce a positive reference
Not all employers and employees get along – sometimes an employee may not have achieved everything you hoped they would in a role. So, before even considering writing a reference letter, it’s important to think about whether you can provide a positive recommendation to support the candidate’s application. If not, it may be best to decline the reference request.
Address the reader directly
A reference letter should start with a formal and direct address to the recipient. If you have their name, always use it. If not, address it to the hiring manager of the company in question.
Clearly state your intentions
Be clear and concise, stating that the purpose of the letter is to recommend the candidate or endorse their skillset.
Include the employee’s current or previous position
Detail how and when the employee worked for you. If they’re currently in your employment, state their job title, their relationship to you, whether that’s as a direct employee or part of a subordinate team, and how long they were with your company. This will help to corroborate the candidate’s CV and/or cover letter.
Outline the candidate’s achievements and strengths
Be specific and include details of what the employee did well within your organisation and examples of when they excelled or exceeded expectations. If you have a copy of the job description, you can relate any achievements you cover to the description, helping highlight how the candidate is a good fit for the role.
Wherever possible, you should provide clear examples of when and how the employee showed particular character traits or skills.
Summarise your recommendation
Use the final section of your letter to emphasise and reaffirm the key points you believe make the candidate a great choice for the role. Make sure you are assertive in your clear recommendation of the candidate. For example, say you can ‘wholeheartedly’ recommend the employee if this is the case.
Provide your contact details
Always provide your contact information, including email address and phone number, so the recruitment team can get in touch if they want to find out more about the candidate or have any further queries. We also recommend signing the letter by hand to add extra validation to the reference.
Best practices for effective employee reference letters
The steps above cover the basics you need to write a reference letter. An effective reference letter should also adhere to the best practices outlined below:
Be specific
If you are providing a letter of reference for a specific role, then tailor it accordingly. This helps to show the hiring team that you’ve thought about the reference and prepared it specifically for their benefit.
Be positive
You should only give a reference if you’re able to be positive and recommend the employee. Positivity should be the overriding tone of the reference, and you should look to give examples that highlight the candidate’s strengths and attributes.
Be professional
Even if you have a good rapport with someone, don’t be too informal or emotional about their impending departure. You should recommend them professionally without including any irrelevant or unnecessarily personal information.
Be fair and accurate
References should be an honest reflection of why you would recommend the employee. You should keep things simple but fair and based on well they worked while under your management or within your business.
Employee reference letters FAQs
If we haven’t covered everything you need to know above, here are some of the most frequently asked questions about employee reference letters.
1. How do you start a reference letter?
Introduce yourself and your relationship to the candidate. You should clarify when they worked for you and in what role.
2. What should I avoid in a reference letter?
Subjective opinions should not be included within a reference letter, especially if they have the potential to reflect badly on the candidate. You should also be careful not to mislead or give an unrealistic impression of the candidate, one way or the other.
3. How long should a reference letter be?
Reference letters are typically no longer than two pages long, usually between 500 and 1,000 words.
4. What should I do if I don’t feel comfortable providing a positive recommendation?
Don’t do it. If you are asked, you should politely decline. You do not have to provide a reason, but you could say something like, ‘I’m sorry, but I don’t feel I have worked with you long enough to provide an accurate and thorough recommendation, but I wish you all the best in your job search.’
5. Am I required to give a recommendation?
You do not usually have to provide a recommendation for any employee. However, in some rare cases, it may be a requirement of their contract.
6. Is a reference letter used for reference checks?
Yes, your reference letter can be used to verify elements of the candidate’s CV and application, including their skills, character, and previous performance.
7. Is there a difference between a reference letter and a recommendation letter?
Typically, a reference letter is a general letter prepared in advance for an employee to share with potential employers. A recommendation letter is usually a lot more specific and written at the request of a potential employer.
Further resources
There are many useful resources out there to help better understand employee references and other essential elements of good working practice, including:
- Our general working practices guidance for recruiters and employers
- Performance management advice for getting the most out of your team
- Tips for boosting employee engagement
- Our essential guide to employment law in the UK
- Employee rights to work references
- ACAS guidance on providing references in a fair way
Reference Letter Template
Here we’ve provided a basic template to build your employee reference letter around. Keep in mind our above tips and best practices to create an effective reference letter for your employees.
Dear [name of recipient]
[Body paragraph: outline why you are writing to them]
[Body paragraph: talk about the candidate and their current role]
[Body paragraph: highlight specific examples of the candidate’s skills]
[Body paragraph: talk about your experience working with the candidate]
[Body paragraph: summarise your recommendation]
[Closing: highlight that you are open to further correspondence and provide contact details]
Sincerely,
[Your name]