I have a proposition for this problem
When you hire troops, they come equiped based on where you hire them from, the better the castle or farm or village status is(larger better established , more populated) the better their equipment they start with when you originally hire them, after which whenever you enter a battle and win and defeat the enemies, whatever you take of theirs after defeating them, the troops are given the option of taking the items for themselves, unless the boss(you) decide to keep the stuff for yourself and sell it for money, in which case they would be left witk rakes or basic swords which they began with.
By the way, this game has such potential, smooth it out improve the few little things, and you have the next diablo 2/wow/ starcraft 2 status of a game. Its quiet innovating in its field and a pioneer in its style