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Coding interviews are effective
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I've never seen a problem with asking people to code in a live session. It's about the problems they are asked to solve. Leetcode style problems are generally unrealistic and have little to do with the skills that are actually needed.
If the problems were more focused on the day to day type of work, nobody would complain. "solve x problem without the industry standard library that solves that problem already" is just testing the ability to quickly reinvent wheels.
It’s more like asking a carpenter to build a hammer as their practical carpentry interview. It’s probably good they know about hammers, but what you actually want to know is if they can build cabinets.
Design in your head a cabinet that can be designed and built within 30 minutes with no research or preparation, and build it. We will be watching over your shoulder, so please coherently describe your process as you figure out what it is.
You wouldn't have learned to do this at any previous workshop, so hopefully you've specifically practiced making this kind of shitty half-hour cabinet in preparation.