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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review Template. This template is designed to streamline processes that involve performance ratings, essential for variable compensation calculations and merit increases. The video highlights how the template integrates with other tools, facilitating bonus calculations and annual pay adjustments based on individual performance ratings. The blank version of the template is showcased, structured to accommodate details for up to 20 employees, with distinct tabs for each employee to ensure organized data management.