What is your recommendations to Company X to address its concern?

For a fair and effective recruitment the company X has to abide by the basic recruitment policies which are generally adhered by the big employers world wide. The ideal solution will be to take a written proficiency examination followed by the interview but many times the written examination is not a practical reality and most of the organisations manage with the interview only. So whatever be the mode of selection the fact is that today we are living in an age of technology and what matters most is the skills of the incumbent in a particular area and of course the background academic qualifications will always be there. So, the important task for a company is as how to check and verify those skills which the candidate had mentioned in his CV submitted to the company.

What I would suggest is to make some short exercises which can be given to the candidate during the interview and he is to be asked to give a solution to that and if he is able to outline the solution methodology in the correct way then it is one sure way of ascertaining that he has that skill. For example if it is an IT related area then even asking him to write a piece of code in any current popular language like Python, C++, or Ruby would do the trick.

In every industry there are practical considerations. Let us take electrical engineering area. For example we all know that a transformer is used to step up or step down the line AC voltage for various reasons and a good transformer does this job efficiently without mush power loss. The number of turns and thickness of the wire used in the windings of a transformer is the crucial factor which determines many results and a question regarding that given to an electrical engineer will make it clear about the level of knowledge and understanding that he has.

Similarly for other functions like finance, administration, HR etc we have to devise tests and case studies to be kept in front of the candidate and ask his views and solutions for those problems and queries. The head of the recruitment cell has to be aware of these methods and tools available to check the practical worth of the candidate before giving him an appointment letter. Depending on the position for which a person is being recruited, we have to design a test cum interview question. It is very necessary to do that as we cannot distinguish between the two people just base on their verbal powers.

If the candidate is working online or has a blog where he puts his creative work then that can also be glimpsed by the interviewer to get a feel of the presentation and expressive strengths of the candidate. Online credentials are also to be incorporated in the assessment process.

These days we are seeing tough competition everywhere and all the employers want to have the best possible employees and employees want to have the best work environment and good pay packet.
Different companies have different recruitment methods. The job of recruiting people will be with the HR department. Every company will have an HR policy and systems and they will contain the methods to be adopted for recruitment.
The best way is to select people after interacting with them. The best process is to have a written test and then shortlist the candidates based on their performance. Then there can be a group discussion which will tell us the ability of the individual in discussions etc. After group discussion, we can have a presentation stage where we can ask the individual to make a small PowerPoint presentation. In this, we can see how the candidate will focus on the job. The individual can make a small presentation on the subject suggested. After that personal interview can be conducted.
These days we are seeing private security services who can enquire about the details of the individual. By hiring such one agency we can get the antecedents of the people who are attending the interview round, verified. This will give us important inputs about the candidate. Then based on these reports and the performance of the individual in the interview final selection can be made.

If the employers are guided with the resumes submitted by the aspirants, such resumes are to be cross checked to ensure that the aspirants possess the requisite potentials to carry out their jobs independently. Here the role of HR is crucial to identify the genuine candidates. The normal procedure would be to conduct a written test followed by the oral and this is applicable in the manufacturing industries, IT industries, Heavy Engineering, Steel Industries and so on.
However, their performance in the written and oral tests are indicative of their grasping in the fields they are working. Ensure that they have maintained consistency in terms of academic performance.
If some of the aspirants have successfully completed these two routs, they are to be tested for their problem solving attitudes relating to the fields in which they have rendered their jobs.
Such crucial questions may be related to the operation area such as in the Blast Furnace how one could taper hot metal seeing the colour of the hot metal. This requires a lot of experience to arrive at the right temperature when the metal is to be poured.
The other condition would be to see his confidence and alacrity with the answers. Some questions might be included to test his patience in the crucial hours.
HR is to associated with the technical experts to confirm the correct responses made by the candidates.
In other industries also, the same pattern would apply.