When a company becomes a certain size, it's inevitable that you will hire people looking for a job.
Firing people sucks. Yes, it affects their livelihood, but having warm bodies on your roster affects your business.
The problem with people who have a job is that they affect company culture as they set the tone for acceptable and unacceptable behaviors in the workplace. It spreads like a disease and the effect can cripple those who show up to work.
Sometimes, this can lead to confusion as people who have a job might think, "I was doing what I was told. I don't understand why." Creating value is much more than simply following orders.