Yes, a lot of places like transparency. It sucks that they made you discuss it before applying though.
I knew I wouldn't get support from my manager of my last position before applying to a new position so I said nothing. They asked in the interview if I told her and I said no, because it was a referred position so I hadn't had a chance to, but I would. I honestly didn't say anything until I was offered and accepted the position. My manager at the time was mad that I didn't come to her first, but the way she reacted about the position I knew I made the right choice as she would have tried to throw a wrench in my application process.
She still took the latest time to let me go saying it was for backfill, but another lady got hired to the same department a week after me and they let her go first available and her position was just as important to cover as mine. So I had to maintain for a month before moving into my new position.
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