What is a skill assessment?
A skill assessment checks expertise or practical abilities online and delivers an objective result. In the application process it helps validate CV claims — anyone stating "Excel: advanced" can prove it in ten questions or not. In further education context it helps measure knowledge level before and after a course. In sales it helps certify product advisors.
The advantage over unstructured interviews: comparability. All candidates answer the same questions under the same conditions. This reduces unconscious bias and makes decisions more traceable. The prerequisite, however, is a well-constructed test — bad questions produce bad results no matter how objective the procedure looks. Invest time in question development, pilot the test and calibrate regularly using real performance of test graduates on the job.