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The Foreign Car Employee Evaluation Tool for Google Sheets requires users to be online and signed in with their Google account. To use the template, make a copy by selecting "File" and then "Make a copy." The tool assesses employee performance based on set references and includes three sections: the dashboard, employee database, and individual review. In the employee database, input details like name, department, and job title to add new employees, which will generate a review button. The individual review section displays the employee's information and allows evaluation across various metrics. After completing the evaluation, the overall performance score is shown, along with the option to add comments for each employee.