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In this video tutorial, Erin from Time Saving Templates introduces the new employee performance review template. This template is designed to facilitate the input of employee performance ratings, which are necessary for other templates like the variable compensation bonus calculation worksheet and the annual merit increase template. These tools help in setting up bonus matrices and determining base pay increases based on individual performance ratings. Erin showcases a blank version of the template, highlighting its functionality for tracking performance details for up to 20 employees, each requiring a separate tab or page.