Employee Engagement has become one of the popular topics in both the business arena in academia. It is considered an element that potentially influences an organization to be effective, innovative, competitive, and sustainable. Sustainable enterprises aim to engage their employees physically, cognitively, and emotionally with the workplace. Employee engagement is often influenced by work environments and ‘touchpoint’ experiences created by the combination of many elements. One of the important touchpoints is performance management. This paper thus aims to examine literature on whether and how performance management can positively affect employee engagement. Derived from substantial literature, approaches in which performance management (performance agreement, on-going feedback and evaluation) can enhance engagement are discussed. Future research directions are also provided.