To create a new Entity right click on the folder Entities (because you want to store the Entity in that specific folder) -> New -> Other…
In the New Document list go down to/search for Entity:
A new Entity will be opened. Click on the save button:
Change the Name and the Description to Employee and click on OK.
As already mentioned, the Entity will be stored in the folder that is mentioned in the field Location. If you selected the wrong folder in the first place, you can also change the location here using the button at the end of the row.
The first building block called Identity is already added and cannot be deleted. The Identity contain the primary key options to identify any specific instance of the entity during the runtime (like e.g. the primary key in a database table).