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In this video, Erin from Time-Saving Templates introduces the newly added Employee Performance Review template. This template was created to streamline the process of copying and pasting employee performance ratings, which are essential for various calculations. Erin explains its integration with a variable compensation bonus calculation worksheet, which helps set up a bonus matrix based on employee performance ratings, and an annual merit increase template that utilizes these ratings for determining base pay increases. The presentation includes a blank version of the template, designed for tracking details of up to 20 employees, with a dedicated tab for each individual.