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In this video tutorial, Erin from Time Saving Templates introduces the newly added Employee Performance Review template. This template is designed to facilitate the copying and pasting of employee performance ratings, which are essential for other templates such as the Variable Compensation Bonus Calculation Worksheet and the Annual Merit Increase template. These templates utilize performance ratings to establish bonus matrices and base pay increases for employees. The tutorial showcases a blank version of the template and explains that it is configured to handle performance details for up to 20 employees, with a dedicated tab for each individual.