Imagine you have 10 companies that you are willing to consider:
- 5 of them are willing to immediately bring you into a serious interview
- 5 of them want you to take a coding test or some other pre-interview step
Why would you bother with those last 5 companies? Just go for the companies that respect your resume enough to bring you in for a real interview.
Those latter 5 companies will lose out on a lot great candidates due to their filters.
I can tell you having worked on tech hiring at scale and having AB tested a lot of these things across many companies, you lose a lot of grade-A candidates with anything beyond bringing them in to interview.
The thing about hiring though is that no single company really notices their own inefficiencies. Everyone has their own filters and their own method of incorrectly rejecting great candidates. However, they ultimately hire people so they feel their process works. They don't really know if they could be hiring better people or hiring people faster.