For example, in your string concatenation example, the naive solution is good enough except in situations where large numbers of strings are to be concatenated in a given run, or the strings are huge, etc., relative to the compute environment. Does it really matter if one uses an O(n^2) solution when a few dozen (or even a few hundred) such operations are applied on "small enough" strings in a given execution on modern computer hardware? No, it just doesn't.
Select candidates who are keenly interested in and knowledgeable about algorithms for positions where it's important (i.e. part of the regular course of development), not because of that slight chance there is one edge case where one adjustment to a more efficient algorithm might possibly be useful at some indeterminate point in the future.