Not only does this disincentivize HR from running fake vacancies or stringing multiple candidates on just to keep their options open, but it also solves the problem of unemployed people job-searching effectively working full-time for free. The fact that companies would have to pay to hire workers would mean they try to make the selection as short and effective as possible.
I guess there is a selection bias on internet comments, but as someone that has been on the interviewer side several times now, I have to say: the interview process is not even remotely cheap for companies. At least the companies I worked for take them seriously and the time investment of senior professionals is huge, which is not cheap at all.
On top of that, there is always pressure for hiring quick, so I don’t know which companies you guys are interviewing, but I don’t know any company that just likes “fooling around”.
Maybe you are not choosing the correct companies on your applications? or maybe you are applying to meat grinder companies such as Meta or Amazon?
As interviewer you would be surprised how many people apply to “senior embedded C developer” without much idea of how to even program, even with theoretical experience on the CV.
This is a 2 sided problem, and I understand it might look one sided sometimes, but it is a very complex problem to solve. Believe me, no one wants to be “hiring manager”, but also, no one wants to deal with a bad team member.
Paying interviewes directly would not help at all, as it would create a new level of mistrust for people trying to gamify the process. And this will end up being paid by honest job seekers and interviewers.
Just a side note: I live in EU, not the corporate American dystopia, so my argument might not apply to the USA. For example, an error on hiring here becomes a huge problem lasting months, in USA I believe you can just fire people at will without prior notice, so you can be more reckless with the interviews.
Senior embedded C developer here in the US. I can speak first hand experience at people applying to be on my team that have reasonable sounding experience and then collapse under interview questions.
Everything else you said applies here too, legally we don’t have repercussions for firing someone quickly (once had a team member for two months), but a healthy org will try very hard to get hiring right because it can cause pretty bad morale to see a revolving door and there is a massive brain and resource drain having to constantly be training new people.