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In this video tutorial, Erin introduces the new Employee Performance Review template from Time Saving Templates. This addition is designed to complement existing templates that require employee performance ratings, such as the variable compensation bonus calculation worksheet and the annual merit increase template. These tools help in setting up a bonus matrix and determining merit-based pay increases according to individual performance ratings. Erin presents a blank version of the template, showing the "All Employee Details" page, which accommodates data for up to 20 employees, indicating a dedicated tab for each employee.