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In this video tutorial, Erin introduces the newly added employee performance review template from Time Saving Templates. This template was created to complement existing templates that require performance ratings, such as those for variable compensation and annual merit increases. The performance review template allows users to input performance ratings for up to 20 employees, with a dedicated page for each employee's details. Erin highlights the usefulness of the template in facilitating bonus calculations and providing equitable base pay increases based on employee performance.