Jobs, when viewed as products, combine search, experience, and trust characteristics.
Research in consumer theory has shown that the credibility of experience claims can be
increased when the claim is stated by a highly credible source (Jain & Posavac 2001). From our respondents’ point of view, prospective employers generally provide low credibility signals to the employment market. Respondents indicated that personal relationships are one way that they gain credible employer brand signals; with many respondents making use of these personal networks prior to deciding to join a company in order to reduce their perceived risk of joining the company (support of P2a and P2c). Respondents viewed employee referrals as the most credible and trustworthy of information sources (see also Collins & Stevens 2002). We conclude from this that credibility has a positive effect on the likelihood of joining a company and ultimately increases the employee-based brand equity of the company. The relationship between employer brand credibility and the perceived quality of the firm as a prospective employer is only relevant if a company is already in the consideration set of a
potential employee. Credibility alone will not increase employee-based brand equity.
Consequently, we recommend that companies utilize credible brand ambassadors so that
relevant brand messages are communicated to employment markets. Current employees are
seen as credible ambassadors for the firm to the recruitment market (presumably as they have no transparent vested interest). Our findings also suggest that recruitment agencies are not be seen as credible ambassadors to the market. Although not all respondents had first hand experience with recruitment agencies, the few who had, agreed that they did not credibly convey the employer brand of the potential employer. One interviewee openly criticized the common practice of using recruitment agencies and brand disguised adverts when recruiting.