Using Dutch data, we examine the characteristics of establishments that operate performance appraisal systems. Our estimates provide a couple of interesting results: (1) Multitasking and teamwork play a role in the use of performance appraisal systems. (2) While a shared corporate culture, the sharing of information, and a professional personnel management emerge as positive determinants, unions appear to play a negative role. (3) Employers fostering career development and promotion opportunities make greater use of performance appraisal. (4) Public sector affiliation plays a negative role.