The job market is always competitive when looking for good people. Companies need to realise that they're selling themselves as much as candidates are. It's important to treat people well during the interview process.
Your interview process reflects the value your company places on each candidate and, by extension, each employee. Be a good ambassador for your company by conducting a professional interview, communicating honestly, and basing hiring decisions on an honest evaluation of each candidate's capabilities. Not only will you make great hires, but you'll build goodwill and enhance your future recruiting efforts.