I work on the matching engine of a stock exchange. So it kind of is fairly sensitive, but I get what you mean.
> interactive session, you get instant feedback (either verbally or via emotional cues) into what they are expecting.
For some people, like myself, that is a nightmare scenario. I do not do well in these type of sessions. Which are also not even close to reflecting the real work we do. There are absolutely no meetings I go into that I can't prepare for [1] and there are absolutely no meetings where I have to solve a problem on the spot.
Being on the autism spectrum also means "emotional cues" are pretty lost on me.
There is also the fact that interviews have to be during normal working hours. Some people prefer to do a "homework" assignment which they can do in an evening or weekend.
This is again why we provide the choice. Not everyone is the same and prefers different interview and assessment routes. Both types are useful for different people.
> If a homework assignment is necessary, it would be better if that were more of a "probationary employment" type scenario, perhaps at a very reduced amount of pay, to only imply that both parties actually have skin in the game.
Really? You would refuse a "homework" assignment, but would agree to "probationary employment"? The later just sounds like WAY more work on both sides.
We have discussed something like this in the company I work for, but came to the conclusion that it just is way too much work. Getting the contracts in place and working out the insurance and tax implications and all that. It just is way too much work to do legally, because it would be the same amount of work to just hire them. However: we can't just hire everyone.
Maybe if you are already a freelancer beforehand then we could work something out that way, but in the jurisdiction I am in not every software engineer is ready to accept freelance contracts. It is a simpleish process to do, but not everyone does and those that do don't apply for full time positions.
[1] You can "prepare" for interviews, but more in a scatter shot approach studying all the interview questions that could possibly be asked. That is not what I mean. There is no meeting I am going into where I do not know the precise topic that the meeting is about.