This paper aims to examine the crucial role of employee engagement in the operational success and resilience of small and medium-sized enterprises in the European Union, with a specific focus on the impact of age diversity on engagement strategies. Tailored engagement strategies significantly improve job satisfaction, decrease turnover rates, and promote a cohesive organizational culture. The study is based on an extensive analysis of previous research and scientific publications, providing a comprehensive overview of the current state of employee engagement practices within small and medium-sized enterprises. It explores how various age groups within the workforce perceive and react to different engagement initiatives, emphasizing the necessity for customized approaches. The paper also delves into the specific engagement tactics that have proven effective across different age demographics, such as digital tools for younger employees and recognition programs for older employees. Moreover, the paper discusses the broader implications of these findings for human resources managers and business leaders, highlighting the strategic importance of implementing age-aware engagement practices. It calls for further research to explore the long-term effects of these strategies, particularly in the context of evolving workplace dynamics and technological advancements. By adopting such tailored strategies, small and medium-sized enterprises can not only enhance employee satisfaction and retention but also foster a more innovative and adaptable organizational culture. In conclusion, this study underscores the importance of a nuanced and flexible approach to employee engagement in small and medium-sized enterprises.