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In this tutorial, Erin introduces a newly added Employee Performance Review template from Time Saving Templates. The purpose of this template is to streamline the process of entering employee performance ratings, which are needed for various other templates, including the Variable Compensation Bonus Calculation Worksheet and the Annual Merit Increase Template. These tools utilize performance ratings to create a bonus matrix and determine merit-based salary increases for employees. Erin shows a blank version of the template designed for up to 20 employees, emphasizing that each employee has a dedicated tab for easy management of their details.