Either that, or the amount of time you subject potential hires is just a "signal" of your power and a filter for the needy, desperate and intellectually invested. I guess some companies are looking for that.
I do a lot of interviewing for our company, and I used to think this too. But I've been totally wrong a few times. Sometimes someone I've been 100% sure about has been let go after a few months, while some I've been very iffy about have turned out to be excellent coworkers.
The best 2-3 hires I ever made as a restaurant manager I knew they would be great within minutes of starting the interview. Other than those outliers I would say a great hiring manager was about twice as likely to have a productive hire as a bad hiring manager. Great hiring managers were batting around 0.600, almost regardless of if it were a relatively “technical” position or not. At some level it was just a crapshoot.
Even when fresh out of school one should see what someone is capable of.
I would filter out the ones that have the criterias, and then see how they fit with current culture rather than roasting them with tests.
Like you do in any other business setting..
It turned into: "an initial interview; meet potential future co-workers and manager; have them see me do some actual work they do; meet the company owner(as he happened to be there);meet the accounting person and haggle over proposed pay; meet the HR person and haggle over minor changes in the employment contract;finally sign the contract" all in about ~7h. Coming in I was expecting to spend an hour there, but I was pleased with the outcome. I spent 6 years working there leaving only because of a move to another city.