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In this tutorial, Erin introduces the new Employee Performance Review template from Time-Saving Templates. This addition is aimed at enhancing the process of inputting employee performance ratings, which are crucial for other related templates. Specifically, the performance ratings will be used in the variable compensation bonus calculation worksheet to establish a bonus matrix and in the annual merit increase template to determine base pay increases based on performance. Erin presents a blank version of the template, explaining its setup, which accommodates details for up to 20 employees, with separate tabs for each employee's information.