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In this video tutorial, Erin from Time Saving Templates introduces the new employee performance review template. It facilitates the input of performance ratings for employees, which can be utilized in other templates such as a variable compensation bonus calculation worksheet and an annual merit increase template. These templates allow for the establishment of bonus matrices and salary increases based on performance ratings. Erin presents a blank version of the employee performance review template, designed to accommodate up to 20 employees, with separate tabs for each employee's data.