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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 streamline performance assessments, as it requires copying and pasting employee performance ratings into various related templates. Erin highlights its compatibility with the variable compensation bonus calculation worksheet, which utilizes these ratings to establish a bonus matrix. Additionally, the template works with the annual merit increase system, allowing for differentiated pay raises based on performance. The tutorial showcases a blank version of the template, designed for managing details of up to 20 employees, with separate tabs for each employee.