7 This level of evaluation addresses the kind of training that will add value to the organisation's business by making it more effective and efficient. Measures at this level can only provide broad assurance of the effectiveness of training and development and it is impossible to isolate the impact of this area alone from other factors. Indicators that could be used at this level include:
■ an aggregate of individual performance as evaluated at Level 3;
■ reduced levels of absenteeism;
■ reduced staff turnover rates; and
■ improvements in organisational output.
8 Methods for carrying out this evaluation include:
■ structured interviews with senior management;
■ senior management evaluation of the benefits of training;
■ trend line analysis;
■ impact analysis;
■ the use of control group and pilots; and
■ the management information produced by an organisation.
9 Organisations can go further and attempt to calculate the financial return on investment. This involves the performance of a cost-benefit analysis, where the return on investment is defined as quantified monetary benefits less costs.