@renef @nixCraft there's a high cost to the team a new hire is joining, as they (try to) train and integrate them professionally and integrate them socially. When they're then fired, the former wasted time and effort stays wasted, and there's a sharp cut to the team's morale as someone they've come to know as a person is reduced to a statistic.
So even assuming (correctly, in almost all cases) that the company doesn't care about the individual, there's a business impact beyond just having paid someone for nothing for a few months.
(We are, in the context of "how do we interview", talking about someone who just isn't good (enough) at the job, not someone who is severely toxic in some way.)
When I'm asked to conduct coding interviews, or to evaluate the set of interviews done as part of the hiring committee, the real question is never "can this candidate write code to do X in 30 minutes on a whiteboard, in a fundamentally adversarial situation". That's not useful information, because that is not and will never be the job.
The real questions are: presented with an underspecified problem, do they gather information about the constraints? When they make assumptions, do they say so? When producing whiteboard-code in what they say is their preferred programming language, does it look a bit like that language? Do they attempt any sort of structure/factoring, or is it just stream-of-consciousness code dumping? Is whichever data structures and/or algorithms they pick at least plausible for what they say they're going to do?
It doesn't matter what their solution is, whether it's optimal, whether it would even work. What does matter is whether they think about the question at all before trying to write down a solution top to bottom, and their seniority decides the bar for what category of thoughts I expect them to have.
Come to think of it, I've been interviewing for over 20 years, trying to establish "are you smarter than a brainless-by-definition LLM".