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It seems this particular company makes a payment for completing those tasks, so it might not be that bad.
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We do, it's a part of our hiring pipeline: https://archestra.ai/careers
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Developers: stop doing whiteboard interviews, they don't measure anything relevant to the real job

Also devs: stop giving us real world problems to solve

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Those are the only two options to finding quality candidates?

Try talking more about the meta of coding itself. Get into the developers head by _talking_ to them and understanding how they would approach and attack different problems. You can show them code and ask them what they would do differently / how they would go about implementing X-Y-Z. Just because you can write foobar doesn't mean you understand how to apply algorithms or w/e specific problems [your] team has. It's _far_ better to understand how they would solve a problem over their syntax anyway.

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Yeah, fun for who exactly?
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Me. That sounds way more fun than inverting a binary tree, and they pay candidates for their time.
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