The South Africa Labour and Development Research Unit (SALDRU) recently investigated the impact of reference letters on the job application process.
The study, supported by the Department of Labour and J-PAL Africa, revealed that reference letters were beneficial to both the job seeker and prospective employer.
The study found that for job seekers, including a letter with an application increases the probability of getting a response from firms by 61%.
These were letters provided by a former employer rather than a friend or family member.
During the study more than 30 interviews were conducted with employers who frequently mentioned the importance of contactable references in the screening process.
These employers stated that reference letters were used to gain insight into a candidate's non-cognitive skills like motivation, reliability and work ethic as well as cognitive skills like numeracy and literacy.
On the firm side, reference letters help to select candidates whose abilities fit with the needs of the job.
Employers also looked at the nature of the relationship between the referee and job seeker and why the employment relationship ended as a means to understand the applicant.
The study further revealed the value of reference letters for female job applicants.
“Attaching a reference letter to a job application is particularly important for women where an 89% improvement in response was observed.”
According to the study the content of the letter made a difference, as “those with better letters were more likely to receive job offers.”
A “good” letter would include information about the worker's former position, responsibilities, skills, duration of employment and reason for termination.
Despite the overwhelming evidence that reference letters could improve a job seekers application many people neglect to add this element.
... reference letters are not widely adopted, partly because job seekers underestimate their potential value.
The study concluded that a well written reference letter could be extremely beneficial in providing more information about the candidate and helping job seekers secure employment.
