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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review Template. This template supports various tools that require employee performance ratings, including a variable compensation bonus calculation worksheet and an annual merit increase template. Both tools utilize the performance ratings to create matrices for bonus structures and base pay increases, respectively. Erin presents a blank version of the Employee Performance Review Template, designed for up to 20 employees, outlining its layout and functionality to efficiently manage performance data for each employee across different tabs.