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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 entering employee performance ratings, which are crucial for other templates like the Variable Compensation Bonus Calculation Worksheet and the Annual Merit Increase template. These tools utilize the performance ratings to establish bonus matrices and base pay increases for employees based on their performance. The tutorial showcases a blank version of the template, which is configured to accommodate details for up to 20 employees, with separate tabs for each employee's information.