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Has anyone done this? I'm asking from the point of view of the interviewer, not the applicant. We're planning to do this for an open position at work and I was wondering if it really gives you more insight, compared to a phone interview. (My work requires phone interviews before on site interviews)

We did for a position we recently filled on my team. It was interesting, and I do feel that we got a perspective that would have been missed over the phone.

She came in person for her first interview (I wasn't in that one), and then did a skype call with a group for her second. Part was interview, part was a scenario where we asked her to present xyz material since a major part of the job is presentational speaking. That's why we did the skype part. I do think it was nice for the other part too though.

I do know, from talking to her afterwards, that it was nerve wracking for her. She said she tested out using the webcam in several rooms before she found one she was comfortable with us seeing in the background.

I just went through this as a candidate, and it was a better experience than a phone interview. You can't see facial expressions or hand gestures on the phone (yes, I'm Italian; hand gestures ARE a method of communication )

As long as there aren't any tech issues on either end, I think Skype would be far better than a phone interview for all parties.

For one of my current positions (I was the applicant), I did 2 phone interviews and 1 Skype interview. It was really smooth. We worked it out to have just telephone back up in case of technology issues. I work remotely so it would've been a big expense to fly me across the country to meet with one person while the other 2 were somewhere else.

I've also been interviewed via 'go to meeting' so we could do it as a group.