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The video tutorial demonstrates how to format employee data in Excel into a table. By selecting the data range and using the insert tab or keyboard shortcut, Ctrl T, users can convert the data into a table. The option to include headers is available, and Excel will insert default headers if needed. The table format includes banded rows and filter buttons for each column, making the data easier to read and manage. A blue sizing handle indicates the end of the table, and selecting a cell in the table activates a contextual tab for further options.