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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review template. This template is designed to facilitate the input of employee performance ratings, which are essential for various functions, including a variable compensation bonus calculation worksheet and an annual merit increase template. Both of these tools rely on the performance ratings to establish a bonus matrix and determine base pay increases for employees. Erin showcases a blank version of the template, highlighting the employee details page, which is configured for 20 employees, with separate tabs for each employee's information.