Earlier quoted context omitted.
You're espousing a false dichotomy. The options in evaluating a candidate aren't merely "give them whiteboard coding problems" or "examine their side projects". Give them a take-home assignment. Give them an in-person assignment where they have several hours to complete a smallish design-and-build task. There are a lot more options, and I'm getting tired of people claiming they don't know how to evaluate technical ca…
Giving a candidate a "take-home assignment" is actually the most disrespectful of the options listed. Unless you're an awesome company, with really cool projects and offering me a jaw dropping salary and benefits, then no, I'm not going to do free work for you. Even if you are an awesome company, people probably have to actually work for you to see that, so no, I'm not going to do free work for you. I'd rather spend…
A few weeks later I came onsite for in-person interview. I brought up the assignment and was able to use it to show my interest and capability of quickly learning and putting something to use. I really believe it worked to my advantage.
If the assignment were to implement something very specific I would not have done it. In my case the assignment was so completely open-ended and was able to convince myself that it wasn't a 'work for free' situation.