I feel this is misleading. I think a reasonable definition of a 'good' engineer is engineer in the 75th percentile and above for their craft. You can debate other definitions, I'm not saying this is the only reasonable one. But by this definition, I think you can immediately see that it is hard -- given 4 engineers, we expect that only one of them is "good". And what if your standards are higher? What if you only want _great_ engineers? I can't believe that it's easy.
1. Person who cares 2. Person who is knowledgeable 3. These two must be the same person!
Many, many forces lined up against meritocracy. All the incumbents, for example, tend to have something to lose, but it's the incumbents who decide if you are hired.
It's a miracle that there are any good companies once the original owners are gone.