The inclusion of an appeals process is important in gaining employee acceptance for the performance management system. This allows employees to understand that if there is a disagreement regarding performance ratings or any resulting decisions, they can be resolved in an amicable and nonretaliatory way. In addition, the inclusion of an appeals process increases the system’s fairness.

When an appeals process is in place, employees have the ability to question two types of issues: judgmental and administrative. Judgmental issues center on the validity of the performance evaluation. Administrative issues involve whether the policies and procedures were followed.

Typically, when an appeal is first filed, the HR department serves as a mediator between the employee and the supervisor. An appeal sent to the HR department is usually called a Level 1 appeal. The HR department gathers the necessary facts and either suggests corrective action to the supervisor or informs the employee that the decision or procedures were correct.

If the rater does not believe corrective action should be taken or if the employee does not accept the HR decision, and the appeal continues, then the process moves to Level 2. In Level 2, there is an outside arbitrator that usually consists of a panel of peers and managers. The panel reviews the case, asks questions, interviews witnesses, researches precedents, and reviews policy.