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In this tutorial, Erin from Time Saving Templates introduces the new Employee Performance Review Template. This template is designed to streamline the integration of employee performance ratings into various compensation-related tools. It supports the variable compensation bonus calculation worksheet, allowing users to create a bonus matrix based on employee performance ratings. Additionally, it works with the annual merit increase template to assign different base pay increases aligned with performance assessments. The tutorial presents a blank version of the template, specifically set up for 20 employees, showcasing its organization with separate tabs for each employee.