This research explores how various performance appraisal practices (PAPs) performance feedback, financial rewards, promotion prospects, recognition mechanisms, and training relate to employee engagement and employee performance within Malaysian Higher Education Institutions (HEIs). Using stratified sampling, data were obtained from 203 HEI employees and analyzed through PLS-SEM. The analysis shows that only training and financial rewards contribute meaningfully to higher engagement levels, while feedback, promotion, and recognition do not appear to shape engagement in a significant way. In contrast, most PAPs demonstrate a positive association with employee performance, with financial rewards emerging as the sole exception. Employee engagement itself also predicts performance positively. These results signal that engagement and performance operate differently in academic workplaces. The study emphasizes the need for educational policymakers and institutional leaders to strengthen promotion procedures, feedback systems, and recognition practices to better support engagement, while using financial incentives strategically to improve performance.
