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I wouldn’t like it either.
Wouldn’t bother me at all. Could be used for fairness and comparison, and even the most basic customer service companies record all their client interactions! If a candidate wasn’t willing to stand by what they said then it would be a red flag. For context, I work in a highly regulated firm and 100% of internal and external calls are recorded for some of my staff.
What’s the benefit vs cost? Cost is privacy implications. Do your company want to carry the burden of archiving and showing proof of deletion if someone decides they want to ask you wipe their PID?
Why would they want to record it?