He’s making assumptions without any experience or data. What if the employee sucks? Well that would be his fault for hiring the guy and his fault for not training the guy properly.
What if the employee quits or runs off with his secrets? That’s what everyone always ask me, as if any situation you’re ever in has a guarantee. You have to do a risk vs reward analysis and play the odds. I’ve learned that one good employee can make up for 3 bad ones.