Tough Interview Questions - What other companies are you considering?

Following is a tough interview question:

What other companies are you considering?

Similar interview questions:
Who is our competition? Are you interviewing with anyone else? Have you talked to other companies about making a move?

Why the interviewer is asking this question:
The interviewer is assessing the competition for you as a candidate. If the interviewer has asked the question, it is usually a good indicator that there is interest in you and the interviewer is already thinking forward to how competitive they may need to be to get you to accept an offer. Depending on the industry, the interviewer may know intimately how much a competitor may be willing to offer. While this is most common at the entry level (where starting offers are fairly consistent), it is also a good indicator at higher levels as well. This answer to this question will also help the interviewer to understand how quickly they may need to complete the process if multiple offers may be coming.

The best approach to answering this question:
If there are other well-respected companies who are pursuing you, it is acceptable to mention that other companies are interested. However, it is usually best not to name drop. Use the question for competitive posturing to get the employer to put together the best possible offer. If you are not being pursued by other companies, simply tell the interviewer that you are very happy in your current role, but you were approached about this position and decided to take time to explore the role. Either way, the interviewer will know that they will have to beat the competition (whether it is your current company or other potential suitors) to get you onboard.

An example of how to best answer this question:
"I have spoken to two other companies and have completed the first round with each of them. We will be scheduling for final round interviews within the next week or so. Does that work well with your timing?"

An example of how you should not answer this question:
"I get a lot of calls from recruiters and I always have my ear to the ground for the next best opportunity. So there are several companies that would love to have me join them, but right now you are the only one where I'm interviewing."

Remember to answer each interview question behaviorally, whether it is a behavioral question or not. The easiest way to do this is to use an example from your background and experience. Then use the S-T-A-R approach to make the answer a STAR: talk about a Situation or Task (S-T), the Action you took (A) and the Results achieved (R). This is what makes your interview answer uniquely yours and will make your answer a star!