Earlier quoted context omitted.
No, I did not say I hire 10% of candidates I interview :). What I said was that's a fair estimate in industry. I feel you are truly confused about FP and FN. Whether there are 99% bad developers out there or if you hire 10% of candidates you interview - these both quantities are independent of FN and FP. FN says that you are turning away X good people and it's again independent of FP which ultimately decides how many…
If you increase FN and FP stays the same, you are more likely to make a bad hire. Do you understand this?
I'm using standard terminologies here. There are plenty of textbooks and articles on confusion matrix, precision, recall, RoC etc. Not sure what definitions you are using to arrive at conclusion that FN increases the number of good hires (it only increases effort).