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In this tutorial, Erin from Time Saving Templates introduces the employee performance review template recently added to their offerings. This template is designed to facilitate the rating of employee performance, essential for other templates like the variable compensation bonus calculation worksheet and the annual merit increase template, which require performance ratings for establishing bonus and pay increases. Erin outlines the features of the blank template, which accommodates up to 20 employees, with a dedicated page for each employee. The template aims to streamline the performance review process and aid in creating matrices for bonuses and salary adjustments based on employee performance ratings.