Earlier quoted context omitted.
Not defending it, but when you and your fellow engineers are spending a majority of the time interviewing instead of programming, such a system is certainly tempting.
Maybe that problem only impacts productivity significantly when attrition is high (suggesting that the problem might be with talent retention and not engineering effort spent on interviewing)?
Sure, you can compromise and take lower quality people, or pay more than anyone in your city, but if you want great people for top 20% of the market pay, it's a lot of work on the hiring side.