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In this video, Erin from Time-Saving Templates introduces the new employee performance review template. This template is designed to streamline the process of inputting performance ratings for employees. The performance ratings can be utilized in various other templates, such as a variable compensation bonus calculation worksheet, which helps create a bonus matrix based on performance. Additionally, it integrates with the annual merit increase template to assist in assigning base pay increases according to performance ratings. The template features a blank version that accommodates data for up to 20 employees, with separate tabs for each employee's details.