Employee engagement and performance are very significant and critical factors in the efficiency of any higher educational institution. These elements directly and indirectly impact educational quality, institutional recognition, and overall institutional performance. It helps to enhance the teaching quality, and research output of faculty members and makes an efficient operational efficiency. This study aims to review employee engagement in higher educational institutions and critically analyse the existing literature on the impact of employee engagement and teacher performance based on the available literature. It is observed from this research work that certain employment abilities necessary for a position in a certain firm are not sufficiently covered by the traditional schooling system. Few personnel possess the necessary competencies, skills, knowledge, and abilities to function efficiently. Therefore, to gain the skills required to contribute positively to the organization's growth, substantial training is required.