A Letter of Recommendation for employee: The What and The Why
When we think about compensation, salary and bonuses usually take center stage. Most minds jump to CTCs, bonuses and office snacks. But not all value shows up on a payslip. Sometimes, what employees really carry with them is something more personal a note of validation, stamped with credibility. But not all compensation is monetary; some of the most meaningful rewards are intangible, and one of them is a Letter of Recommendation (LOR). A thoughtfully written LOR is more than just a pat on the back and a gesture, it’s a path to new opportunities. It reflects not only how an employee contributed to the organisation but also how the organisation chooses to acknowledge that journey. In many ways, an LOR speaks volumes, not just about the employee, but about the values of the company, too which is a great reflection on company culture.
It reflects your work ethic, impact and character in the eyes of your employer and continues to offer value even after you’ve moved on. In today’s competitive job market, a strong LOR can make a real difference in helping employees stand out. For employees, it’s proof that their hard work was seen.
What is a Letter of Recommendation (LOR)?
A Letter of Recommendation is a formally written letter by a current or former employer, supervisor or manager, highlighting an employee’s strengths, accomplishments and professional conduct. It often supports job applications, higher education or even freelance work and gives future employers insights that a CV simply can’t. A well-crafted LOR acts like a credibility booster, helping the employee walk into new roles with trust already on their side. Think of a LOR as a certificate that defines the eligibility scale of a person and what kind of work they are capable to handle.
In layman terms an LOR is a formal letter written by someone in the company vouching for an employee’s skills, character and contributions. It talks about your work, your wins, your worth and why someone else should be lucky to have you next. Whether you’re heading for higher studies, shifting industries, applying for a dream job or building a client base a good LOR is a reliable form.
Traits of a Great LOR
From an Employee POV:
- Personal, not templated. Feels like it was written for you, not copy-pasted.
- Mentions real projects and outcomes not just meaningless adjectives.
- Highlights both personality and performance.
- Written by someone who actually worked with you and witnessed your growth, not just your L2 boss.
From an Employer POV:
- Reflects well on the organsiation, both the bigger picture and core level work (your tone, values, and brand come through).
- Clearly defines the role and relationship.
- Balanced as it celebrates the person, but keeps it professional.
- Avoids internal intel, but signals trust and respect.
An LOR isn’t just about what is said — it’s who says it, and how honestly it is portrayed.
LOR as Compensation
Not all compensation is tangible; many work as silent warriors to add growth to an employee’s career. Let’s break it down:
- Direct Compensation – Salary, bonuses & commissions.
- Indirect Compensation – Health insurance, leaves, retirement benefits.
- Non-Monetary Compensation – Growth, learning, flexibility & autonomy.
- Symbolic Compensation – Recognition, shout-outs, and Letters of Recommendation.
A Letter of Recommendation may seem like a simple document, but for the employee, it’s a career companion. And for the employer, it’s a chance to support, uplift and stay connected with talent beyond payroll. In a world where corporate relationships and credibility drive careers, this kind of letter becomes compensation that truly lasts.
