[lhorie]

That's a great analogy. Just a small nitpick: While it's similar, in reality, interviews are not quite like being graded on a curve in school. The main point of a technical screener is to decrease the likelihood that a candidate will bomb the more demanding onsite interview loops. This is especially important because these loops typically take up most of a candidate's day, disrupt the day of a bunch of engineers, and might even cost the company hundreds or even thousands of dollars in plane tickets/accommodation costs if the candidate is flying in from out of state.

It's true that an interviewer might look at previous candidates to calibrate expectations, but they don't necessarily pit candidates for the same team against each other as would be the case in school curved grading. Usually what happens is a candidate just barely solves the technical exercise, but also raises a bunch of yellow/red flags. A common rule of thumb among tech interviewers is "if in doubt, reject". This is - in my experience - so common that a company will typically nab the first candidate that clears the expectation bar. It's actually rare that two or more candidates would be up for consideration at the same time because it's hard to even get a single one of high enough caliber in the first place, since good engineers are in extremely high demand and are almost never actively looking for jobs (recruiters reach out to them instead).