I am in a temporary one-year position (not in the tech field) hired directly by the company so no recruiter involved. At three months in I asked about how I could transition to full time (my manager previously mentioned he was pleased with my performance and was impressed how quickly I was able to ramp up). The response I received from my manager was that I would have to wait until closer to the end of my one-year contract when a “headcount” would be completed. My manager also asked if I was looking for another position (I said No) and to inform him if and when I do.

I took that as a sign that I should start looking, but I’m now wondering how I should communicate my reason for looking for a new position during interviews with a potential employer. What would be the professional manner of answering such a question?