If you set the bar 2 std. div. above what you need, you are hiring qualified people with a p value of 5%. You're rejecting /most/ qualified people too.
Most people underestimate how random the process is. There are a few ways in:
- Be 2 std. div above the qualifications
- Apply to many places and pick the one where you're lucky
- Give another, less noisy source of signal than resume + interview (e.g. networking into a company, consulting, references, major open source contributions, etc.)
I wouldn't get my current job if I randomly applied right now. I happened to do well on an interview process which wasn't well-aligned to my background. That was a fluke. I was probably the most-qualified candidate, but if I didn't have a lucky day, I don't think an interview would have shown that.
Last hiring cycle, I was also rejected several places where I am pretty sure I was better than the candidate who was hired too. If you make this about you, you'll feel horrible. If you understand the huge random factor, you'll do much better.
(Disclaimer: I have specialized skills, so my interview process isn't a typical SWE interview process).