Atta Tarki, Tyler Cowen, Alexandra Ham

In an effort to minimize mishires, many companies have adopted extensive hiring processes … that we believe is as damaging a form of inefficiency as mishires themselves. […] And there’s no strong evidence that it’s actually even working.  The treatment has become worse than the disease.

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In their review of their hiring processes, Google discovered that they could capture 86% of the value produced by interviews in the first four interactions. While each additional interview would increase the predictive accuracy by about a percentage point, Google decided this was not worth the cost, including the risk of losing good candidates. Following a similar logic, Amazon has settled at five interviewers per candidate.

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