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Unless I really love the company, a required phone interview might be enough to just decline the offer.
Some interviewers are not polite enough to call when there is not massive noise in the background and if I can't hear you, why bother?
Also, if the interviewer is not on-point with their questions and leaves gaps in the interview, in person, you can make a witty comment about the room you are in to make the interviewer laugh and want to spend more time with you. In a phone interview, there's nothing you can say but patiently wait for them to continue and that's awkward if the interviewer has no idea what they're doing.
It really depends on the position. For entry-level positions, I generally don't do both an in-person AND phone interview--just the in-person interview. The only time that I will do a phone interview for an entry-level position would be if the individual cannot make it for the in-person interview that day but of course I am still going to have them in for the in-person interview later on. For managerial-level roles, I am going to do phone interviews and in-person interviews.
I personally hate phone interviews probably as much as most job candidates hate them since I don't think that they give people a good opportunity to accurately 'sell' themselves and not everyone is a phone person. I am not personally a phone person and hate my own speaking voice...so generally let the hiring manager do the speaking on the phone while I listen in and take the notes. The in-person interview is much more important to me as far as selecting candidates, and I like the person being interviewed to meet his/her potential co-workers as well as the leadership team.
My employer has never asked me to hire anyone I have not met in person. If we talk to someone on the phone it is to screen, then invite to an interview.
Ditto, they are just an inexpensive screening process.
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