Abstract Employee engagement requires compensation and benefits, which are essential prerequisites. This involves both monetary rewards and intangible benefits, like recognition and other perks. The purpose of this study is to ascertain how rewards and remuneration affect employee engagement in the Libyan construction industry. The instrument for gathering data was a standardized questionnaire, which was given to 400 people at random in the chosen study area. However, only 310 of the 400 questionnaires that were distributed were actually retrieved, yielding a response rate of 77.5%. The statistical analysis software SPSS (version 23.0) was used to perform a range of statistical analyses. The findings show that rewards and compensation have a considerable positive impact on employee engagement, which in turn has a significant beneficial effect on project management success.