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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review template. This template was created to support various existing templates that require performance ratings for employees, such as the variable compensation bonus calculation worksheet and the annual merit increase template. Both of these templates utilize employee performance ratings to establish bonus matrices and determine merit-based pay increases. Erin showcases a blank version of the template, which is designed to accommodate up to 20 employees, with each employee's details organized in separate tabs or pages.