What are some products that tackle developer hiring problem?

Most companies hire developers by giving them data structure and algorithm 'puzzles' to solve. Is it really a good metric to hire qualified developers ? I have seen really good developers who can't "grind leetcode" who miss out from good opportunities. Following the suite of FAANG companies , well funded startups also make developers solve algo. puzzles to get into the company.
A solid developer with 5+ years of experience usually needs to spend time "preparing " for interviews to get a new postion .
(on the other hand , personally I think asking system design questions to backend web devs. at least makes some sense)
I feel like most companies are missing out on great developers just because of the screening and hiring process. ( on the other hand one knows what can be expected in a typical interview and study for that ).
Please mention any startups that are trying to solve the developer hiring problem in a different way than the standard .
Please mention opinions as well.