Credible brand signals convey information which has greater potential to be effective in
reaching the target group (Tirole 1990). Potential employees’ perceptions of the credibility of the employer brand signal is dependent on their evaluation of the trustworthiness of the prospective employer (Hoeffler & Keller 2002), and potential employees’ perceptions of the willingness and ability of the prospective employer to deliver what is promised (Erdem &Swait 1998). Promises made to potential employees during recruitment affect their expectations and subsequent evaluations of the job (Buss 2002). Unfulfilled expectations may lead to employee dissatisfaction and turnover. Additionally, negative word of mouth may result and employee referrals may decrease, (Miles & Mangold 2004). If a signal is credible and the prospective employer is considered trustworthy, potential employees associate decreased risk with employment by the firm, and gain comfort from the expectation that promises made by the company are likely to be fulfilled. This, ultimately, increases their perceptions of the quality of the firm as a prospective employer. Consequently, potential employees reduce their efforts to gain additional information about the prospective employer,reducing their information costs (Erdem & Swait 2004).