1.       Selection: - Employment tests help to select the right candidate for the right job. For example, performance test enables to select the right candidate depending on their performance.

2.       Training: - Employment tests facilitate training to the selected candidates. For instance, employment tests may indicate certain weaknesses of selected candidates. Training can be provided to overcome such weaknesses.

3.       Placement: - Employment tests facilitate proper placement of selected candidates. For example, aptitude test enables to place the right candidate depending on the candidate’s talents or skills. For instance, a person good at finance may be placed in the finance department.

4.       Promotion; - Employment tests are conducted not only for selection but also for promotion of existing employees at higher levels. For example, banks conduct tests to promote clerks at office level.

5.       Time saving: - Employment tests require less time as compared to interview. Large number of candidates appears for employment tests at the same time. However, interviews are normally conducted on individual basis.

6.       Reduces work of interviewers: -Employment tests reduce the workload of interviewers. For instance, the performance of some candidates may be very good at tests and therefore, few questions may be asked to such candidates during the interview.

7.       Uniformity: - Employment tests provide information of candidates regarding knowledge, attitudes, skills and experience on uniform basis. All candidates appearing at the tests have to provide answers to the same questions. But in interviews different questions are asked to different candidates and therefore, there may be no uniformity at interviews.

Economical: - Employment tests are more economical as compared to interviews. Large number of candidates can be tested at a time and at one place.