What is an employer’s reference letter?

An employer’s reference letter, sometimes known as a recommendation letter, is a document detailing an employee’s time with a company, their achievements and, sometimes, an endorsement. A manager, human resources representative, mentor or employer usually writes an employer’s reference letter.

When you write a reference letter, it’s important to carefully consider the employee, your relationship with them and the aspects of their job in which they excel.

Three types of employer’s reference letters

There are three types of reference letters that employees often seek from employers:

Employment reference

When an employee applies for a new job, they may need to ask a previous employer for a professional employment reference letter to submit with their application and resume. An employment reference letter informs the potential employer why the candidate is a good fit for a job.

Employees can also use reference letters for other purposes. Some people put employee reference letters on personal websites for recruiters and hiring managers to see. They may also keep them as part of their portfolio.

If an employee applies for a mortgage or rental space, they may need a slightly different letter known as an employment verification letter. This letter includes the employee’s job title, employment dates and, sometimes, salary information. Banks or other agencies use these letters to determine the employee’s ability to repay a loan or pay rent.

Related: Employment Verification: Verifying Employment Services

Academic reference

Candidates seeking entry into a higher education program may need an academic reference letter. Employees often ask their employers to write a reference letter that describes their work ethic and qualifications.

Admissions boards use academic reference letters to determine if students are a good fit for the program. The information in these letters includes specific tasks and professional skills which may not be addressed by other parts of the application. This makes an academic letter of reference an important part of a higher education application.

Character reference

If a candidate is applying for a high-level position or seeking entrance into a professional organization, they may need a character reference letter. Sometimes referred to as a personal reference, this letter details an employee’s character, work ethic and other attributes.

Companies and organizations ask for character reference letters to determine if the candidate is a good cultural fit. An employer should only write a character reference letter if they have a close personal relationship with the employee. This enables them to accurately describe the employee’s personality.

What to include in an employer’s reference letter

When you write a letter of reference, make sure to include the following information:

• Relationship with the candidate: To establish yourself as a reliable reference, describe your relationship with the employee. Include your professional relationship, the length of time you’ve known the employee and if you know them on a personal level.
• Company name: Make sure to include the name of your company or organization.
• Employment dates: Include the start and end dates of employment if applicable. Most recipients need to know the length of employment in order to process applications.
• Position held: Include the employee’s title and job description. You can help potential employers identify a good match by explaining the scope of the employee’s position.
• Why they are a strong candidate: Add at least one specific experience that you shared with the employee that shows their capabilities. Detail the skills they used and the outcome of the experience.
• Reason for writing the endorsement: The purpose of most reference letters is to recommend an employee for a position or entrance into a school or an organization. Describe why you think the employee would make a good fit based on your knowledge of them.
• Contact information: Add your email address and phone number at the bottom of the letter as well as a note offering to answer questions if needed.

Four tips for writing an employer’s reference letter

Here are some tips to consider when writing an employer’s reference letter:

Be confident about the employee

Writing a letter of reference is a big endorsement. Before you agree to write a reference letter for an employee, make sure the employee is good for the position. Learn about the role or academic program. If you don’t know enough about the employee to write the letter, politely inform them as quickly as possible. This allows the employee to get a reference from someone else who can confidently write on their behalf.

Include job description information

Ask the employee for the job description or details of the program or organization so you can write a tailored letter. Doing this ensures you address key skills and qualifications for the hiring manager. If you don’t have the job description available, describe the abilities and skills you’ve seen the employee demonstrate in the workplace.

Be specific with examples

It’s more effective to use specific examples than to list skills. Instead of writing, “They always help other employees,” try writing, “Last week, they helped an employee learn how to operate our digital filing system, which went above and beyond their prescribed duties.” This will give the recipient a much clearer perspective of the employee’s potential.

Address your audience

If your employee provides you with a contact person for the letter, address the letter directly to them. If not, use a generic greeting such as “To Whom It May Concern” or “Dear [relevant title].” Be sure to include your contact information, your title and your company’s name.

Related: Job Offer Letter Format With Template

Employer’s reference letter template: employment

Here is a template that you can use for your next letter of reference:

Dear [Recipient’s name], [Statement of Reference: Offers context as to why you’re writing the letter] [Body Paragraph: Includes candidate background. Describe the time they spent working for you] [Body Paragraph: Includes examples of relevant skills developed] [Body Paragraph: Includes specific examples of employee achievement] [Closing Statement: Summarizes the letter’s intent] Sincerely, [Your name] [Contact information]

Employer’s reference letter sample

Review this example to learn more about what an effective reference letter contains: Dear Vicky Proctor, I’m writing to you today to recommend Jeremy Krueger for the position of payroll manager at your organization, Winston Family Company. Jeremy worked as a payroll specialist for Johnson Storage, where I was a manager between the years of 2012 and 2019. When I worked with Jeremy, he was a payroll specialist and I was his immediate supervisor. I worked directly with Mr. Krueger to ensure payroll was fast and accurate. During this time, he displayed the skills and attitude required for the job. Some of Jeremy’s duties included calculating payroll taxes, processing payroll for more than 100 employees and updating employee records. Over the years, Jeremy developed and perfected the skills needed for the role. When Jeremy was my employee, he took it upon himself to digitize our payroll records, managing the project in its entirety. Jeremy’s ability to prioritize, determine what needs to be done and act on it would be a valuable asset in any payroll position. That’s why I’m happy to recommend Jeremy for the role. Best, Allison Peet (555)-555-4455 allison.peet@email.com

Employer’s reference letter FAQs

Here are some frequently asked questions about employer’s reference letters:

Do reference letters ever have specific instructions?

Sometimes, letters of reference have submission requirements. This could mean they are part of an application packet and must be submitted with other materials. There may also be requirements for what is included in the letter.

In other cases, requirements may include creating a digital letter versus a physical one. To write a high-quality employer’s reference letter, make sure you understand all of the requirements needed for submission before you write the letter.

What should I do if an employee asks for a reference letter?

First, make sure you feel confident recommending the employee. If you decide you’re not able to supply a good reference for an employee, politely notify them so they can seek other references. If you choose to proceed, collect all necessary information before crafting the letter. Ask about the purpose, submission requirements and deadline. Once you finish the letter, proofread it before you send it out.

How should I describe someone’s character for a reference?

Make sure you know the employee well enough to describe them honestly and accurately. If you’re confident in your level of acquaintance with the employee, think about the employee’s best qualities. You can use keywords that hiring managers look for when seeking a good character fit. Examples are more helpful than lists of traits, so including a personal anecdote is a great idea.

Employer’s Reference Letter Templates for PDF & Word

Employers must understand how to write high-quality reference letters for their employees, and these employer reference letter templates can help.

*Indeed provides these examples as a courtesy to users of this site. Please note that we are not your HR or legal adviser, and none of these documents reflect current labor or employment regulations.