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In this video, Erin from Time Saving Templates introduces the new Employee Performance Review template. This template is designed to streamline the process of inputting employee performance ratings, which are essential for various other templates, such as the variable compensation bonus calculation worksheet and the annual merit increase template. These documents utilize performance ratings to establish a bonus structure and determine base pay increases, respectively. Erin showcases the blank version of the template, which accommodates details for up to 20 employees, with a dedicated tab or page for each employee to manage their performance ratings effectively.