Earlier quoted context omitted.
An interview is a special scenario where the pressure is several orders of magnitude beyond anything you'll usually encounter in the work environment. Some folks' reasoning skills utterly fall apart in such situations. Without understanding that, you may miss out on some stellar performers who have no issues reasoning or solving problems when left alone to work.
It is often a great disappointment to people looking for jobs when they figure out that employers just don't care if they miss out on someone. They are trying to avoid a bad hire more than they need to hit a 100% rate identifying all good hires. (Not to mention, if you cannot perform under stress, that is a negative aspect of your capabilities, and a fair reason to bring in someone who doesn't fail under stress.)
This is absolutely correct.
I mean, sure, hiring great people is hard enough that I hate to miss out on somebody great, but not nearly as much as I hate making a bad hire.
Bad hires cost a lot, and not just directly (cost of hiring, salary, etc.), but in time, stress, and motivation of the people they work with.