Hiring by building product
Last year we decided to hire summer interns. We wanted to know how well someone would perform on the job, so we gave our top candidates a real paid task from our backlog. Introducing a payment allowed us to ask for something challenging and lengthy, while also respecting the candidates’ time.
We shared this paid challenge ($200) with the 10 student engineers whose resumes we liked the most and gave them a week to complete it. A couple of them didn't touch the challenge, a few started it but dropped it half-way, 5 of them submitted pull requests, and three of them (1, 2, 3) were awarded the bounty & summer internship.
From our experience, hiring by building product predicts on-the-job performance really well.