I like this idea! I think that it makes sense for prospects that are either already contractors, or perhaps the unemployed.
If you already have a job, then I can see some challenges though - I'd imagine a candidate for Google would not be able to accept payment for doing work while being employed by Facebook, for example. Did you ever run into an issue like that?
That particular objection has never come up. If it did I'd do as others have suggested and offer to donate to charity, amazon vouchers, or similar.
The issue that has come up is, as @rubinelli identified, tax hassles. In those instances we've gone the charity route.
(It's interesting actually. Now that I think of it the payment isn't really the issue. It's that we are visibly demonstrating how we value the interviewee's time.)
Good point. But I suppose you can maybe get round this by, say, giving candidates amazon vouchers or something? (I don't know what the employment contracts stipulate on either companies though with regards to gifts and such)
It is common for large companies to have policies stating employees have to report a gift above a certain value, but that's mostly to prevent outright bribery (which still happens anyway, in most procurement departments).
Paying cash can create some tax complications that vouchers avoid too.
If you already have a job, then I can see some challenges though - I'd imagine a candidate for Google would not be able to accept payment for doing work while being employed by Facebook, for example. Did you ever run into an issue like that?