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Erin from Time Saving Templates introduces a new Employee Performance Review template designed to streamline performance evaluations. This template supports multiple functions, including the copying and pasting of employee performance ratings, which are essential for other tools like the Variable Compensation Bonus Calculation Worksheet and the Annual Merit Increase Template. These tools help managers create a bonus matrix and determine merit-based pay increases based on performance ratings. The tutorial showcases a blank version of the Employee Performance Review template, designed for up to 20 employees, with separate tabs for each employee's details.