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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review template. This template complements existing tools that require the input of employee performance ratings. It aids in calculating variable compensation through a bonus calculation worksheet and facilitates annual merit increases based on performance ratings. Erin presents a blank version of the template, demonstrating its structure designed for up to 20 employees. Each employee has a dedicated tab for individual details, streamlining the review process and improving performance management efficiency.