If you run a company and you have a "revolving door of employees" (ie: we can't retain talent), your managers "are new to the process" and don't know what they're looking for (ie: we hire inexperienced managers), and you "can't get enough skilled interviewers on a panel" (ie: "we don't hire enough engineers and we're too cheap and shortsighted to put them on tasks like hiring")... then yeah, you should expect your hiring costs to go up, have a revolving door of employees (because you don't know how to hire), and your teams to be demoralized.
The consequences of that are your (company's) fault. You should own up to your shortcomings and work on your hiring process... don't just punish the candidates indefinitely so that you can ignore your problems.
(I say this as a serial founder, and hopefully never need to be on the other end of the hiring process.)