This kind of thinking is why a lot of market place startups fail.
You have two parties engaging with each other in a subpar way, and your solution is to make things better for one party (hiring side) and significantly worse for the other (candidates). Trying to convince candidates that this is good for them, won't make it so. Eg:
> Every stamp that you hand out, pass or fail, leaves a candidate richer than they showed up. This attracts strong candidates to you, because even your rejections are worth something to them.
Candidates don't want stamps. They want stable work.
Yes! At some point, the author even complains about the (weaker) US law for employee on how it's a mess to fire somebody, but easy to let go from an internship. So much about stability that employees seek.