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In this tutorial, Erin from Time Saving Templates introduces the newly added Employee Performance Review Template. This template facilitates the copying and pasting of employee performance ratings, which are essential for various related worksheets. The context includes a variable compensation bonus calculation worksheet that utilizes performance ratings to create a bonus matrix, as well as an annual merit increase template that adjusts base pay increases according to performance. Erin showcases a blank version of the template, designed for up to 20 employees, highlighting the structured layout with separate tabs for each employee's details.