One of the strange relationships of D&D is that between the PC and 
those he pays to accompany him into danger and
possible death. A hireling is an extension of the will of the player but he
has a will of his own expressed in morale and reaction rolls to determine
how an NPC hireling will act in a given situation. What follows are some
of my ideas on treatment of hired NPCs.

The hireling is not a slave, he is a free man who has made the
choice to risk his life. This type of duty should not be confused with the
hirelings who sit around the castle surrounded by an army of comrades
ready to ride forth if the smallest band of Orcs happen to trespass on the
holdings of their lord. The hireling who accompanies the player into the
underworld is facing proven danger and acting as porter for heavy loads
of gold and other treasures. They are a different sort of person and
require a different pay structure.

A hireling should be offered at least two years normal salary in
advance (72 GP for human heavy foot etc.) plus a share of the spoils.
There are several ways to divide spoils. The first and easiest is to give a
share of the treasure equally to all who participate; while many DMs like
this idea, many players do not. Another way is to give a percentage of
the treasure much as they are given a percentage of experience points, a
25-50% usually works fairly well. Finally I will list the way which I prefer;
the principal employers and player characters receive a share and they
in turn give a share to their NPC employees, usually 5-10% as a base.
Very few people can be convinced to enter the dungeon on a strict
salary basis. Those who will go are not trustworthy and will ask at least
the equivalent of five years salary in advance. In relatively safe encounters,
such as a few Goblins or a Kobold or two, these purely mercenary
hirelings will not act with outstanding courage; but when they face the
dragon, or the Balor demon steps into the corridor, snaps his whip and
ignites, these warriors-for-money are going to question the wisdom of
their decision to go along and in most cases they will take off, along with
any treasure you were foolish enough to let him carry! Non-humans will
not hire on for salary alone, the major exception being Orcs, about
which more later. In addition to paying the hireling, in many cases the
employer must also supply the new hireling with weapons and equipment
to go into the dungeon with. In this case, the employer may simply
buy the hired man some cheap weapons and leather armor or he may fit
him out in chain or even plate and loan them a magic item or two
depending on the affluence of the employer and the level of the
monsters likely to be encountered.

Most NPCs hired to go into the dungeon do so on a one-time deal.
They are ready to risk their lives on the expedition but are unwilling to
commit themselves to long term service with a Character. After a trip
into the dungeon most NPC hirelings will retire to blow their hard
earned gold on strong drink and their favorite vice. When the time
comes to enter another dungeon, many of the hirelings will be broke
and ready to go back into danger for a price. If the Character paid the
NPC well at the end of the last trip and did not try to cheat them, they get
a + 1 on loyalty rating. The aformentioned prices for hirelings is for first
level fighters, for each level the NPC gains he will ask double the salary
of the level below and if they get their share from the Character rather
than a regular share they will ask that this be doubled as well. If,
therefore you hire a second level fighter it will cost twice as much as a
first level, a third level NPC will cost four times as much as a first level.
Magic users and clerics make special deals and few of these are strictly
mercenary, most will not enter into dungeon service for less than a full
share of all treasure found. NPCs as suggested in the GREYHAWK
supplement should receive a half experience point count and if they
acquire enough points in an expedition to reach the next level, they will
finish out this trip at the rate agreed upon but if they are rehired they will
ask the increased rate. Those hirelings that are not rehired are available
to the DM as NPCs to interact with the players.

If the Player Character doing the hiring should die and not be
raised there are several options. If the party allows it, the hirelings may
divide the treasure gathered by the deceased and try to make their way
out of the dungeon. If, as is more likely, the party wishes the hirelings to
continue, one of the other characters may take them on as hirelings and
divide their treasure with them; if the hireling is receiving a straight
percentage this should continue. If the method of dividing the
employer’s treasure is used and none of the Principle Characters wish to
take on the hirelings they should become NPCs and receive a straight
percentage such as a 25% share of all treasure found. If a hireling is
killed and not raised all new treasure goes to the employer, any treasure
they took with them into the dungeon is distributed evenly between all
other hirelings and the employer.

Non-humans present special problems with respect to hiring as
NPC’s and dividing treasures. Elves do not like to enter dungeons in the
employ of others. They do not mind so much working in castles and
fortresses because they can, on occasion, get out among the trees and
fresh air. In the dungeon they feel that they lose the ability to control
their own destiny. Most Elves care little for gold but are very fond of
finely cut gems and ornate jewelry. Being raised with magic they also
appreciate clever or powerful magical items. To entice an Elf to work for
a Character requires a fine gem or a magic item plus at least a 15% share
of gems, jewelry and magic; they will carry coins for their employer but
in most cases do not keep more than a few for daily expenses. Elves
increase their demands once for each level they advance as fighter and
once as magic user. Because the experience points are split they stay
first level a while longer than most human types.

Dwarves are at times quite greedy. They are fond of gold, gems
and fine weaponry. Dwarves will not be tempted by less than four years
salary (192 GP for heavy infantry, 240 GP for crossbowmen) and 15%
of treasure gathered. Most of the magic items desired by Dwarves will be
weapons and armor. The one thing that can make a difference when
dealing with Dwarves is the legendary +3 hammer with “automatic
return,” These are treated as relics of their forefathers and if the hammer
is given to any but another Dwarf there is a 65% chance that any
given Dwarf in the party will try to take the hammer, either by stealth or
by force, if necessary killing the rightful owner.

Orcs are at times more trouble than they are worth. They can be
tempted to accompany a Character into the dungeon by a mere one
year’s salary in advance plus 2-5% of the acquired treasure. They will
work only for chaotics. They will work for a set salary and no part of the
treasure; for this they ask only a salary of about five years regular work
(90 GP for heavy foot). This causes a -1 on loyalty score. The drawbacks
to hiring Orcs to accompany one into the dungeon include the
fact that Orcs are prone to run away when confronted with a difficult
fight. They will, if not watched closely, take the treasure they are
carrying and take off. They also have a bad habit of killing their
employer in his sleep and running away with all of the treasure. Orcs
work cheap and know the underground but should never be trusted.

So treat those you hire well and maybe you will not wind up with a
knife in your ribs.