[t0mbstone]

The answer is simple:

Companies should be hiring people on a contract basis to perform REAL WORK. This work should ideally be the very type of work they would be doing if they were hired full time.

If they do a good job, then great! Hire them on full time.

If they don't do a good job, but they meet the acceptance criteria of the contract, then they get paid, but don't get hired full time.

If they don't complete the contract requirements, then they don't get paid at all.

This arrangement is completely fair to both parties, and doesn't waste anyone's time. It's a win/win scenario.

Unfortunately, most companies are too lazy to set up a hiring process that looks like this.