I agree that this part of the game is one of the most difficult. Be glad you're playing the warrior, this effect is way worse for a mage.
I think the starting human troops are always available on the first island, and those make better minions than any of the pirates/barbarians in terms of preventing losses. I always start with the standard Swordsmen, Bowmen, Priests and Inquisitors, who get a morale boost from the banner you start with. The morale boost will increase their defense, which is helpful that early in the game.
Swordsmen have the armor skill, so they make good early game tanks. Bowmen's ice arrow give you a little crowd control, and the fire arrow does good damage, and counts towards alchemy badge. Priests and Inquisitors can heal/resurrect your swordsmen helping you finish the fight with no losses.
Clear out the snake-keeper's hut on Debir and I think you can always hire Royal Snakes there. These make a great, survivable 5th unit, with high initiative, decent speed, and no retaliation attacks. They always poison what they hit, helping you get the alchemy badge. Also keep an eye out for Griffins, they don't die in droves like barbarians, and are fast enough to scoop up treasure chests with impunity. Their ability to split their stack during a fight can come in handy to force ranged troops into melee. You can also try the Royal Thorns that always seem to be for sale in Debir, The thorns they summon make great decoy units to run interference for your troops, and not much can kill them this early in.
Once these troops start being too hard to keep alive, it's time to look for replacements. Always be on the look out for units with good HP, and ideally, good skills. If they are melee, avoid slow units regardless of their HP. At this stage I look for: Beholders, Royal Griffins, Necromancers, Demonolgists, or Archmages. The archmage's magic shield skill is really great for preventing losses, and counts towards your Guardian Angel badge which I like to get as early as possible.
Once you get the map to Verona, your choice of troops, equipment and spells will really open up, and you'll find the game become much less of a struggle.
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