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Principal analyst, BitMasons
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Hadn’t even thought of that angle. But you also get a more human connection in an in-person interview much less going out for a meal. And I know there’s going to be a contingent on here who says they don’t have time for that of thing. <shrug> Plenty of fish in the sea.
I worked for a downtown firm for a while which loosened up dress code a little bit so I didn’t always wear my jacket in—though cargo pants and rock T would definitely have led to an HR meeting. One day I had to borrow a jacket from someone when I had to go to a nearby studio for a TV interview:-)
Screens were voice calls for a long time. I’m a big fan of what’s normally the day of interviews be in person even if you take AI cheating out of the picture. I realize not everyone agrees. Zoom interviewing is mostly a COVID outcome.
That is far less common outside of tech. Even within tech, I did throw on a blazer and tie when I interviewed for my last job. Totally unnecessary but any company for which that’s actually a problem it’s a red flag. I did start dressing down a bit for most of the developer-oriented conferences I attend for the reason you say.

For many years in large corporations, pretty much the only acceptable dress was white shirt, tie, dark suit, and dress shoes. We were still wearing something like that at. trade shows into the 1990s before things started loosening up.

(Mildly funny story. One big, probably Unix, show the IBM staff showed in logoed polos and suddenly everyone else is like If IBM doesn’t need suits we sure don’t.)

I did have interviews with a government agency many years ago that, among other things, involved a battery of tests including what I assume were foreign civil service exams. I got an offer though I didn't take it.

But assuming in-person day long batteries of tests for universities and companies is probably not very practical.

You can argue whether university is a very efficient use of time or money but it presumably does involve some learning and offers potential employers some level of a filter that roughly aligns with what they're looking for.