This research focuses on the determinants of employee engagement in family businesses in Peru. The study is based on previous research that showed the importance of organisational culture, leadership, and human resource management practices to achieve effective business performance. The methodological strategy was to conduct a qualitative, quantitative, and documentary analysis research. The study found that participatory and authentic leadership styles, effective communication, and job satisfaction were key factors to retain talent in two family businesses and small to medium-sized enterprises in Peru. These factors can enhance employee engagement, which is critical for the success of family businesses. The results suggest that Peruvian family businesses can improve their sustainability and contribute positively to the economic growth of the country by utilising different measures. They can prioritise leadership, communication, and job satisfaction; offer opportunities for employee development and growth; provide competitive compensation packages; and create a positive work environment. The findings have implications for family businesses in emerging markets as well as for businesses operating in consolidated markets.