Before an arbitration, parties must agree that the arbitration will be either binding or non-binding.
Most arbitrations are binding: the parties agree that after they present their case to the arbitrator, the arbitrator will decide their case and render an award. The arbitrators decision will be final and binding on all parties to the arbitration.
Some arbitrations are non-binding: the parties agree that the arbitrator will not impose a decision and the parties may ask the arbitrator to make recommendations as to what the outcome might be. Insight gained in a non-binding arbitration may help parties settle their case sooner rather than later.