Bias is a factor in that many interviewers have no idea what they want from a technical perspective, or simply lack confidence themselves. When in doubt hire somebody exactly like yourself. This isn't objective or a valid representation of competence, but it is common.
Talent gaps apply when there are a surplus, plethora is a better term, of new developers and senior developers are purple unicorns. It takes time and lots of practice to transform a newb into a rockstar. Throwing money at the problem isn't a magic formula for providing extra time and practice. Years of employment experience isn't an indicator of quality either as that doesn't necessarily mean practice solving hard problems.
When you solve for bias suddenly there are a lot more competent candidates available. If you realize a single senior paired with several newbs accounts for the talent gap more quickly suddenly you can hire functional teams without false expectations.
I also read somewhere that some big bank (Goldman) just has a very circuitous, lengthy application process and the main point of it is to weed out the spray and pray applicants.
I knew someone who worked there in 2002. (Well, now having worked there, I know lots of people who worked there in 2002, but in 2002 I knew someone who worked there.) At the time, they were a small startup with a reputation for hiring only the best, the way you might think of Medallion or D.E Shaw now. There wasn't a perception that you could just walk in off the street and get a job like in The Internship movie.
As for companies innovating in this regard, it's kinda funny to think about it. When it first got started, I think LinkedIn was trying to be exactly this. Rather than encouraging people to add any and every person they ever thought about (or that asked), the idea was that you should only add those people that you know and trust. In this way, you could use your LinkedIn network as a network of trust for things like hiring or looking for work. That's changed I think both by LinkedIn wanting to have a large network of data to mine and by any number of participants that will add connections since they're really after a bulk network rather than a trusted network. In both cases the business case for such a network of trust doesn't seem to work well for the company providing the service and doesn't work well for the participants... so it breaks. Naturally, that's just one approach and there could be others, but I do think there have been efforts here.
Hypothesis: these people might not have knowledge, but they're very willing to schlep, and so—with enough effort and iteration—they can take a plan and turn it into working code.
And on the other hand, some people who are very "talented" on paper are nigh-unemployable because they just can't get things done. (They can easily tell someone else how to get the job done, but they have no drive or desire to schlep for themselves.)
The other side of this is that, at this level of developer, these are exactly the positions where offshoring makes sense. If you're going to get people whose primary talent is a willingness to schlep just adequately enough to be employable... well, I can find those kinds all over the world, and can probably do better in the skills category, for much less cash. So if I'm looking for domestic (I'm in the US) technical talent, I'm usually looking for those that are worth the higher pay commanded in the US... which means I am absolutely trying to sort out the schlepers for the most part. Naturally, offshoring has its own difficulties regardless of why you're doing it; so there are times when schleppers (I like that term :-) ) are sufficient, but at some point that strategy changes (growth, etc.)
I've literally seen engineers with 20 years of experience grind for 45 minutes on FizzBuzz, not able to make any progress.
Yep, that's it. The same cost-benefits dynamics as spam mail.
But, if there is, I’m assuming that candidates are just applying randomly to any positions that are available. The ‘Tinder’ strategy is probably a good one if the goal is to maximize earnings. However, if one is a ‘5’ it makes sense to spam all of the positions. But, if one is a ‘10’, it makes sense to avoid interviewing all together because there is diminishing returns: too much work for too little potential gain.
So, the other question is if the hiring process is so ineffective, why aren’t companies innovating? There must be lack of competition in the market if companies are willing to wait several months and spend thousands of dollars to fill a role while also missing out on the best candidates.