I like hackerrank/codility style coding challenges.
gasp
They're timed. They're run against a standardized test suite. And they have support for many languages.
It's really unfortunate the number of companies that give custom take home coding challenges that run the gamut. The problems with which are manifold:
- Inconsistent technology and language choices by candidates
- Time spent varies wildly and is easily underestimated by companies - and 4-5 hours for an unpaid coding challenge in an early round with a company is a significant investment
- Good candidates will de-prioritize your company against others that move faster
I know that I only answered a small subset of the question, but it's very difficult to lump all developers together and come up with a single, wholistic, and ideal interview process. From the nature of the role (IC/Lead/Manager) to the technologies/specialty to the company's mission, the process will need to be customized to some degree.
However, do not think that your custom coding challenge will somehow be the perfect key to assessing developers.