Replacing dead hirelings in Pathfinder downtime system

I am currently pricing up the cost of running a mercenary guild for a game I am assisting with (GM for downtime).

I’ve combined Guildhall and Barracks (while removing duplicates between building types) and placed a Mercenary Company organization in it.

Given the way the player in question plays, sooner or later he is going to get some of his Elite Soldiers and Elite Archers killed off. What would be the best way to handle replacing lost men?

The best I can think of would be to charge 1/5 of the cost per lost man from the unit and deny earnings from that unit until fully restocked. Or would it be better to say that it takes one week per lost man to “heal” through recruitment? I want to strongly discourage using 3rd level characters as cheap disposable meat shields.

Are there actual mechanics for this situation that I have missed and if not is my approach the best idea?