The purpose of this research is to identify the key determinants of employee engagement and their predictability of the concept. Moreover, it also studies the impact of employee engagement on employee performance. Causal research was done to study the impact of relationships. A survey questionnaire was developed. Simple random sampling was used to gather the data from employees of lower managerial level and middle managerial level from the small-scale organization. The data was collected from 190 out of which 148 respondents were finalized. Regression and correlation were used to predict and estimate relationships. It was found that all the factors identified were predictors of employee engagement. The variable such as working environment (r square = 0.223), leadership (R square=0.275), and teamwork and peer support (r square=0.194) have a significant impact on employee engagement. Moreover, employee engagement has no significant impact on employee performance (R square= 0.008).