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Recently hired an intern and part of the interview was a code test. While the individuals didn't write any code, they did look at a snippet of code of forty lines plus and then were able to write notes or comments. Afterward, I asked them to just tell me what they thought the code did. A code test is a valuable tool during an interview, if used properly.

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http://www.goarticles.com/cgi-bin/showa.cgi?C=2149951

What rubbish, not everyone can walk the talk.

Coding tests have been critical in my experience. I've interviewed far too many people that could talk code, but couldn't write it to save their life and end up being a complete drag on the team because their code simply sucks. Once we added a coding test our hit percentage of finding good potential hires went WAY up.