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Can some HR people clue me in on the correct answer to this question? Why is it asked? Is it asked to find out if I am valuable and if they want me they should offer me a job right away, or so they know I am not really serious about the job I am applying for at the moment?
When I am ask this question or any question that I don't understand I ask why.
If you are interested in the position put it this way. " I feel this position is an exact match to my past experience and I already see so much more I can bring to this particular position, so if you don't mind me asking exactly what do you have in mind with that question.
If the company has you in mind with another person, you can then ask them what is the ideal person you see for this position. You want to leave them knowing that you are interested in them they are top on your list.
Remember, when person starts a new job the company maybe concern with keeping them. So lets say you are interveiwing with this company and they offer you the job. What will you do with any other offers that come in while you was interviewing with these other companies?
Companies want the best possible situation for the company.
I worked for an agency. It's a dirty tactic so they can ask you WHERE, you give them a list of names and they call those companies and try to throw a sales pitch at them to become their temp staffer.
While I would prefer to work for your firm, I believe I need a fallback position to unnamed possible opportunities. You understand that I should keep that confidential as I would keep your clients information confidential should you hire me.
I'd phrase the response around either "yes, I'm actively looking to make a career move" or "I'm not actively looking but this position/company sounded exciting and I wanted to learn more about the opportunity".
Either way, I'd be honest.
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