Generally, I'm more likely to hire someone with interesting hobbies than someone who has completed HackerRank tests. I don't find it compelling to see that a candidate has accomplished standardized metrics; but I am swayed by non-computing hobbies. Synthesizers, painting, rock climbing, volunteering, and so on are indicators of a curious mind that's happy to apply itself.
But do they still have to pass a bunch of HackerRank-style interview questions? The best interview question in my life, a few years ago, was one where they gave me an open-ended question, a laptop, and the whole afternoon with occasional checkins to see how I handled it. The evaluation was completely subjective. That's hard to standardize at an industrial scale, I understand why FAANG can't do that, but smaller shops…
So far we're batting fairly well. Folks don't generally lie about their experience.