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Erin from Time Saving Templates introduces the new Employee Performance Review Template. This template facilitates the process of entering employee performance ratings, which is essential for other templates like the Variable Compensation Bonus Calculation Worksheet and the Annual Merit Increase Template. These templates utilize performance ratings to create bonus matrices and determine base pay increases for employees. Erin showcases the blank version of the template, highlighting the All Employee Details page, which is designed to accommodate up to 20 employees, each having its own separate tab or page for review and input.