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My theory on this is that it is a market for lemons.

http://en.wikipedia.org/wiki/The_Market_for_Lemons

Solve that problem to solve this one.



Extend the idea of "lemon laws" to hiring. Every new hire has a 3 month try-out period (as a contractor?) where they will be fired if it doesn't work out. If you make this point forcefully during the interview, some low-quality applicants will seek safety elsewhere rather than risk losing their job, while high quality applicants won't be deterred.




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