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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 inputting employee performance ratings, which are essential for other templates like 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 based on employee performance. Erin presents a blank version of the employee performance review template, highlighting that it is configured for up to 20 employees, with separate tabs for each employee's details.