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The foreign car employee evaluation tool for Google Sheets requires users to be online and signed into their Google accounts. To use the template, make a copy by navigating to File and selecting "Make a copy." The tool is designed to assess employee performance based on user-defined references and includes three sections: the dashboard, employee database, and individual review. In the employee database, input details such as name, department, and job title for each employee, enabling the automatic display of a review button upon adding a new name. The individual review section allows for evaluating employees on various metrics, with the overall performance score and comments displayed at the bottom after completion.