With increasing demand for skilled employees, companies are going to great lengths to offer job perks like 401ks, health plans and options like flextime. But keeping your employees happy may be as simple as providing them with a coffee machine.

According to a recent study, 38.5% of workers say they couldn’t live without coffee, and 60% of workers drink coffee on the job – an average of three cups per day. With a Starbucks coffee now running over $4, providing your employees with free coffee is a cheap and easy way to keep them happy and more productive (and to help them save money, which might help you avoid people asking for a raise.)

It’s well known that the caffeine in coffee helps cognitive performance. Caffeine keeps workers awake, alert and focused and improves memory and concentration, which helps reduce workplace mistakes. Caffeine has also been shown to help prevent work-related injuries for those who work long or late hours.

Coffee breaks are also an invaluable way to build a positive office culture. Drinking coffee with colleagues is an easy way to get to know them better, facilitating teamwork and cooperation across departments. Employees in one survey said they’d had productive work conversations over coffee.

Of course, there’s also the simple fact that people like free stuff, and giving your employees perks helps them feel valued and appreciated. According to a recent national survey, three out of five employed Americans feel more motivated to do their best work when provided with perks in the office. Nearly half said small perks make them feel more valued. In fact, 37% of people would prefer having free coffee every day to a company Christmas party, according to another recent survey. With the recession still hampering office budgets, a coffee machine is an inexpensive perk to provide your employees to let them know you care.

How inexpensive? These days, having an employee go out for coffee, the coffee itself can cost a company more in time and money than having a coffee service. We, of course, prefer the coffee service route and help to not only keep product available for your office – but we maintain the equipment as well. It’s a great service for both the employees and the employer!

Offering a coffee machine in-house isn’t just good for employees, either – it’s a favorite with visiting clients or potential clients. Being able to offer a fresh cup of coffee instead of just water from the water cooler will make a better impression on the people who visit your business.