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In this video, Erin from Time Saving Templates introduces a new employee performance review template, designed to facilitate the input of performance ratings for various applications. This template is useful for creating a variable compensation bonus calculation worksheet, which allows for the establishment of a bonus matrix based on employee ratings. Additionally, the template supports the annual merit increase process, enabling differentiated base pay increases according to performance ratings. The video showcases a blank version of the template, which is organized to accommodate details for up to 20 employees, with separate tabs for managing each individual's information.