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In this tutorial, Erin from Time Saving Templates introduces the newly added Employee Performance Review Template. This template is designed to streamline the process of incorporating employee performance ratings into various worksheets, including a variable compensation bonus calculation worksheet and an annual merit increase template. Both of these tools utilize performance ratings to establish bonus matrices and base pay increases. Erin showcases the blank version of the template, which is organized to accommodate up to 20 employees, with distinct tabs created for each employee's information.