They are a fucking joke.
That's my shorthand analysis of them, anyway. But allow me to dig a little deeper. Unless you're involved in the health and safety of humans or indeed animals, there is likely no industry that asks so much of job applicants than in the tech industry. Whether you're a designer or engineer, the process is just ridiculous. Specifically, the long-winded, drawn-out, multi-stage process of demonstrating you can design, code, analyse, and communicate to an arbitrary standard set by a group of self-important individuals.
If you, like me, have more than 10 years of experience in the industry, you should know how to adapt and evolve your craft to align with an organisation. Naturally, you want to inject your own taste and interpretation of good design, but depending on the nature of a business, that can either be encouraged or tempered. Which is fine. But giving designers an ambiguous brief and just 10 to 12 hours to do a month's worth of work (usually unpaid) with expectations that you'll deliver your best work, is fucking nuts. That is not how it should work. You want to be giving companies an indication of your ability, supported by an already well-established portfolio. Which should be enough to base a decision on. If you communicate well, demonstrate a good understanding of research, UX, UI, and several coding frameworks, then you should be given a chance. Almost all companies have a 3 month trial period anyway. So why make the application process feel like you're entering the secret service or some profound world-changing mission? You help people build websites, for fuck sake. Get a bit of perspective.
All this to say that I'm done applying for roles within large companies (200+ employees) for a higher number or industry ego. If you're an interesting startup, then I might come knocking. Or you can pop your head in my door and say hello. It's always open. Just don't expect me to run through 5 stages to prove my worth as a designer. You either appreciate my work or you don't. Let's not waste time.
Or maybe I'll just go freelance.