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Interesting! I was asked this the other day with a consultant company. I was honest saying, "No, I am not interviewing anywhere else" (I have a job... looking for a second job) and added, "I am really interested in your company." The guy in charge just said, "Wow, thanks for your honesty." I'm entry level and have never been asked this before. I didn't know what to say, so I was truthful. I didn't get the paid internship - they liked me, but found someone else who fit better.
I was actively interviewing and said "No" to one job when asked this. They ended up making me an offer 2 months later and would have probably been faster had I been honest. I had a recruiter ask have I applied anywhere else in the application and I had applied to a lot of positions but I just put the ones I was interviewing with down, it may have been used for leads but I was honest.
"Yes, I have some other prospects in the works." "Yes, I have a few interviews." "Yes. I'm actually waiting to hear back from a promising opportunity."
Then follow up, but make sure you're in constant contact with them. Never tell them where. Insist that you'd rather not let them know. Let them know, again, that you have a promising prospect or some such in the works and just wanted to know when a decision will be made. It'll either seal the deal or let you know quickly if you aren't a finalist. Got me a job offer. Sometimes they just want to know because you are their top candidate and they don't want to lose you. GL!
if you say Yes:
-you appear to be a more attractive candidate
-they need to make more haste to hire you if you're desirable, lest you get snatched by the competition
-they're worried they missed the boat, and will cut their losses and just hire someone else instead
if you say no:
-you appear to be undesirable
-no need to hurry with you. It could mean they don't need to rush HR, HM, or the team if they're on vacation
-they won't take you out of the running due to you probably taking a better offer.
In the end, you can lie about this anyways. Just don't give them verifiable info, like where you're actually interviewing, or pretending to be.
They want to be able to interview x number of candidates, so of you say "yes I have interviewed elsewhere" they know they may need to continue finding qualified candidates for the hiring manager to interview.
Always say "yes" to imply that you are an in-demand candidate being courted by lots of employers. If they press you for names, I'd really be tempted to say "it's none of your business" but will probably come back with "sorry, I'm sure you'd appreciate that I keep all employers' info confidential - including yours."
That makes sense. When I was honest and said no, the CEO said: "Wow, thanks for being honest." I guess he was shocked I said that... either way, I didn't get the job.
Always say yes and if they ask for details, just tell them, "I can't disclose that because I don't recall which companies ran blind ads."
Do not tell them you're waiting to hear back from a promising opportunity, because if they're torn between you and the next guy, that could be enough to sink your ship.
Never help hiring managers make a decision they may be torn over by eliminating yourself!!
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