Think like an employer - using your own cash to run a business.
Would be more or less willing to try and expand your business & hire an additional employee?
If - once you hired a person you had to keep them forever - plus provide them health care, retirement, pay them at least $XX per hour.
If - you could pay the salary & benefits you both agree to, terminate them any time you wanted.
If you want more jobs to be created - making it easier to get rid of people actually does it better than not allowing people to be terminated.
This will be EASY to understand if YOU ARE PAYING THE EMPLOYEE OUT OF YOUR OWN POCKET.