ASSESSMENT OF PRIVATE ORGANIZATIONS SOCIAL SECURITY SCHEME IN RELATION TO EMPLOYEE PERFORMANCE:The Case of Family Guidance Association of Ethiopia (FGAE) and Program for Appropriate Technologies in Health (PATH)

Abstract

This study is designed to look at the effect of the private organization social security program on employee performance in selected private and non-governmental organizations. In June 2011, the Ethiopian government issued Proclamation No. 715/2011 to give social security coverage for employees of private and non-governmental organizations. Before the enactment of this proclamation, the social security program only covered public and governmental organizations. But there were organizations that were providing the provident fund benefit schemes. This study focused on selected organizations that were providing the provident fund benefit before this proclamation. But after June 2011, these two organizations have two types of employees, those covered by the provident fund and those hired after June 2011 and covered by the new social security system. This study used questionnaires and also interview questions to gather information in relation to the new social security system and employee performance. It also looked at the impression of the employees and management of the two organizations. Based on the data collected and analysis done using the SPSS 20 software, the study resulted on the finding that most of the employees were not in a position to consider the private organization social security program as a benefit, and the effect of the program on employees motivation and performance is not as such high. In addition the majority of employees preferred the provident fund benefit. It is thus recommended to work on raising the awareness of employees in an organized manner between the government and also employers.