I think my team has gotten pretty good at this. We address the "flood of applicants" by tossing out any resumes that don't have some sort of CS or programming on them (about 25%), and favoring, in order, people who have held a programming job, people who have done programming internships, and people who have taken CS classes. A decent GitHub profile will bump you up in the two later categories.

Next is a five minute phone screen. We're a Java shop, so I ask them something dumb, like "what's the difference between public, private, and protected?" Something any Java dev would know; I'm just trying to find out if they have ever actually used the language.[1]

People that pass the phone screen get a Skype interview, where they write code in an IDE. The first half hour or so is chat and trivial problems like "sort this array" or "return true of this String starts with a letter between A-Z, inclusive." They're allowed to Google and use the standard libraries.

Finally, we have a "close to real world" problem for them to work on. It's a standalone, mostly-toy CRUD application, and we'll ask them to add a feature that represents the kind of work they'd be doing. Again, they have their IDE of choice, Stack Overflow, etc.

I don't think we've had a bad hire since we started using this process. Have we turned aside some all-stars that interview poorly? Maybe, but the team we've built is really good at what they do, so I'm pretty happy with the results.

[1] We have hired Senior devs that don't know Java. One of our team leads was a C# guy for a decade or so, but he was smart and available, so we scooped him up. Java is easy to learn. Programming well isn't.