If your colleague or former employee is looking for a new job, writing them a solid reference letter can really help them out. You can vouch for their skills, experience, and character, and you can explain the value they’d bring to their new role. 

One study found that applications that included reference letters increased callbacks by 61%, and helped employers to select candidates with the highest ability. This means that your reference letter might not only be useful to your colleague, but to their potential new employer, too.

In addition, reference letters can significantly impact salary negotiations, leading to an average increase of 7-12%.

Looking for tips on how to get started? We’ve got some guidelines for you below—plus three handy sample templates.

What should an employee reference letter say?

The reference letter you write should detail who you are, and what your professional relationship is with the person you’re writing the letter for. Are you a previous employer, for example, or a manager or colleague? What kind of experience have you had with the kind of work they do and how they do it?

The content of the rest of the letter depends on whether you’re writing a reference letter or a recommendation letter. Some people use the terms interchangeably, while others believe that recommendation letters are for a particular position, while reference letters are more general. 

In both instances, you’ll want to highlight the person’s experience, professional qualities, and positive characteristics. But if you’re recommending someone for a particular position, make sure you tailor your letter accordingly. Highlight the skills, experience, and traits that are relevant for the role and which are most likely to help their application succeed.

In fact, before you start writing the letter, talk to your former employee directly and ask them about any milestones or achievements they’d like you to mention.

How to write a reference letter for an employee

When you’re writing a reference letter for an employee, there are some general guidelines you’ll need to follow regarding the formatting and the letter’s content. In addition to the points below, don’t forget how important it is to make the letter personal. It shouldn’t sound like it’s been mass produced.

Make sure to follow these tips closely-especially since around 80% of hiring managers have changed their decision based on positive reference letters.

Here are some specifics to keep in mind:

• Format your letter properly. Reference letters follow a similar format. Start by including your contact details, personal information (name, job title, address), and the date. You’ll then want to address the recipient with a salutation (like “Dear {title or designation}”) and proceed to write the body of the reference letter. Finally, conclude the letter and sign off with your name. (BTW: The sample templates we’ve shared in the next section are all formatted, so you can check them out to see what your letter should look like.)
• Mention your relationship with the person you’re recommending. This includes details of your professional relationship—colleague/line manager/employer—how long you’ve worked with them for, and whether you know them in a personal capacity.
• Include your contact information. We covered this in the formatting section, but it deserves a second mention because including your contact details is really important in case the recipient wants to follow up. Consider including your email and/or your work number. And don’t shy away from adding a short note to your letter, encouraging the recipient to contact you if they need to.
• Make your colleague/former employee’s case. Since the goal of a reference letter is to help someone land a new job, you’ll need to explain why they’d be a great fit. You’ll want to highlight their skills and experience, and showcase how their abilities will help them perform well in the role.

Sample reference letter for employees: 7 templates

Ready to write your reference letter for an employee? Here are three templates to give you some inspiration. Feel free to use these—but be sure to tailor your letter to the role in question, and try adding a personal touch wherever you can.

1. Former employee reference letter for employee

This reference letter template is great for providing general information on your former employee.

2. Recommendation letter for an employee

Need to recommend an employee for a specific role? Here’s a template to give you some inspiration.

3. Reference letter for your colleague

Are you writing a reference letter for someone you worked with, but who didn’t report to you? When you write a reference letter for a colleague, you can help them land a new job by sharing their positive traits and vouching for their skills and abilities. 

4. Reference letter for a close, personal colleague

Writing a letter for someone with whom you were close? We got you covered with this template. Although it's tempting to get sappy and gooey when talking about your close colleague, you need to keep it professional.

Reference Letter

Personal Reference for [Employee Name]

Hello [Recipient's Name],

I am delighted to write this letter for [Employee Name], with whom I've had the pleasure of working closely for [duration] at [Company Name].

[Details about the employee’s character, work ethic, and contributions].

What sets [Employee Name] apart is not just their technical skills, but their personal qualities of [mention qualities like empathy, leadership, etc.]. Their ability to connect with colleagues and clients alike has been invaluable.

Please feel free to reach out if you need any more personal anecdotes or information.

Warm regards,

[Your Name]

[Your Position]

5. Reference letter for a short-term employee

Are you writing a reference letter for someone who was only contracted for a short time? This template will help you help that employee look amazing.

Reference Letter

Reference for [Employee Name]

To whom it may concern (if you don't have a name to write to),

I am writing to recommend [Employee Name]. Although their time at [Company Name] was brief, [duration], they made a significant impact.

[Employee's specific contributions and skills].

[Employee Name] has shown a great aptitude for [specific skill or area of expertise] and has been a collaborative team member. I endorse their abilities and professional attitude.

For further details, feel free to contact me.

Regards,

[Your Name]

[Your Position]

6. Formal reference letter for a long time employee

A reference letter for an employee who's been with you in the trenches for years is a great way to say "thanks for your loyalty." Here's a template for that scenario.

Reference Letter

Reference Letter for [Employee Name]

Dear [Recipient's Name],

I am writing to wholeheartedly recommend [Employee Name] for [position or opportunity]. During their tenure at [Company Name] for [duration], [Employee Name] has consistently demonstrated exceptional skills and professionalism.

[Employee's specific contributions, achievements, and skills].

[Employee Name]'s remarkable ability to [mention a key strength or skill], coupled with their dedication to [relevant work ethic or company value], makes them an invaluable asset.

I am confident that [Employee Name] will bring the same level of commitment and excellence to any endeavor they pursue. Please feel free to contact me for any further information.

Sincerely,

[Your Name]

[Your Position]

[Contact Information]

7. Reference letter for an employee who has been with the company during different tenures

Do you have an employee who has spent a long time with the company overalll, but at different times? This template is for you. It highlights the employee's multiple tenures, growth over time, and their consistent value to the company, making it suitable for situations where an employee had non-continuous employment with the same organization.

Reference letter

Reference Letter for [Employee's Name]

Dear [Recipient's Name],

I am writing to provide a reference for [Employee's Name], who has been associated with [Company Name] during multiple tenures, most recently from [most recent start date] to [end date]. [Employee's Name]'s repeated decisions to rejoin our team are a testament to their commitment and alignment with our company's values.

Throughout their periods of employment, [Employee's Name] demonstrated notable growth and adaptability. During their initial tenure from [first period of employment], they showed [mention specific skills or achievements]. Upon their return in [mention subsequent periods of employment], it was evident that [Employee's Name] had further honed their skills, bringing [mention new skills or experiences gained].

Their ability to seamlessly reintegrate into our team and rapidly adapt to evolving company needs has been particularly impressive. [Employee's Name] consistently displayed a high level of professionalism, a strong work ethic, and an ability to collaborate effectively with colleagues and clients.

[Employee's Name]'s unique journey with our company provides a comprehensive view of their resilience, dedication, and continual personal and professional development. I am confident that these qualities will make [Employee's Name] a valuable asset to any organization.

Please do not hesitate to contact me if you require any further information or specific examples of [Employee's Name]'s work and contributions to our company.

Sincerely,

[Your Name]
[Your Position]
[Company Name]
[Contact Information]

Example of a completed reference letter (using one of the templates above)

It helps (especially is you're a visual learner like me 😉) to actually SEE something in front of you to get a sense of what it'll look like. Here's one of these templates complete with fake people and details:

FAQ's About Reference Letters

1. What is the purpose of an employee reference letter?
  Answer: An employee reference letter is written to recommend a former or current employee for another job, a promotion, or other professional opportunities. It serves to attest to the employee's skills, accomplishments, and character.

2. What should be included in a reference letter?
  Answer: A reference letter should include information about the employee's role in the company, duration of employment, key skills, achievements, work ethic, and character traits. It should also provide specific examples or accomplishments to support these claims.

3. How long should a reference letter be?
  Answer: Typically, a reference letter should be one page long. It should be concise yet comprehensive enough to convey the employee's strengths and capabilities.

4. Can a reference letter be negative?
  Answer: Reference letters should generally be positive. If you cannot provide a positive reference, it's better to decline writing the letter. Providing a negative reference can be legally risky.

5. Do I need to mention why the employee left the company?
  Answer: It's not mandatory to mention why the employee left the company, unless it directly pertains to their performance or character in a positive way. Focus instead on their contributions and skills.

6. How do I format a reference letter?
  Answer: A reference letter should be formatted professionally, similar to a business letter. This includes the writer's contact information, date, recipient's information, a formal greeting, body paragraphs, closing, and signature.

7. Is it okay to use a template for writing a reference letter?
  Answer: Yes, templates can be a helpful starting point, but the letter should be personalized to reflect the specific qualities and contributions of the employee.

8. How should I handle a request for a reference letter if I don't know the employee well?
  Answer: If you don’t know the employee well enough to write a detailed letter, it’s appropriate to politely decline the request or suggest they seek a letter from someone who knows their work better.

9. What if the employee asks to see the letter?
  Answer: Whether to show the letter to the employee is at the discretion of the writer. Some prefer to keep it confidential, while others are comfortable sharing it.

10. How current should a reference letter be?
  Answer: Ideally, a reference letter should be current, reflecting the employee’s most recent accomplishments and roles. However, letters from significant past positions are also valuable.

Don’t forget to personalize your reference letter 

Reference letters follow similar formats with good reason—the structure helps you organize your points and provide a complete overview of the qualities, skills, and experience of your former employee or colleague. Think of their unique traits and achievements that will really help them stand out, and include any important company milestones that they helped achieve. If it helps, don’t forget to ask for their input.

But don’t forget that employers receive dozens or even hundreds of applications for a single role (according to Glassdoor, each corporate job receives a whopping 250 resumes on average), so to help your colleague standout, it’s important to customize your reference letter. The good news? Magical makes it easy to plug in personal details like names and job titles into templates that you can use anywhere. Download the free app to try it for yourself.