In a response to this LinkedIn post.
Sometimes I think people in tech companies treat interviewing like a hazing ritual because they went through the same process, they think the next set of new hires also needs to jump through the same hoops.
For junior engineering positions, each open position gets 200+ resumes, and they mostly look the same (classes, internships, projects), the coding challenges become a way to stand out.
Actually, I think companies can find talent, it just takes the current employees a lot of time (around 30 hours recruiting person-hours to land one employee) given the hiring funnel.
Some back-of-the-envelope calculations based on my hiring experience in big tech.
50-100 resumes per open role, 10% resumes are suitable for a recruiter call, 50% make it to the hiring manager phone screen, 50% make it to the first 2 rounds of coding challenge, and 1 in 4 during the final rounds get an offer, 1 in 2 will accept. You get around a 0.3% percent chance of working in one of these big tech companies.