I'm saying the CoC wants a large number of troops on paper. Whether they are TES seems to be a non-requirement due to numbers dropping. When I was DCO at my former Unit I tried to get a bunch of people on NES but the CO wouldn't hear of it because it would make our numbers on paper drop.
There's quite a few factors that go into this mentality. Having also dealt with similar issues at my own unit, I am well versed lol.
To start, the CAF ties budgets to on paper strength. If your unit has 250 soldiers, then it gets allocated class A pay for 250 soldiers to parade their 39(? I can't remember the number) days per year. But if out of that 250, 100 show up the bare minimum, once per 60 days, then you can use that class A pay for things like work parties, additional paid days for leadership to come in and do PACE on another evening, etc. More on paper soldiers means more money for exercises, which means if you have 250 on paper, but only get the same 50 on ex, you get the budget of 250 to play with.
To compound this, if a unit gets too small on paper, the CAF doesn't trust that unit to reliably generate senior command appointments. An infantry "battalion" of 80 just isn't large enough to generate a LCol and CWO every 3 years that have the experience and knowledge to be able to sit at a table of their peers and not fall behind. If a unit gets too small, the CAF starts parachuting in command teams.
Finally, get small enough and you will be tactically grouped, which to many is just amalgamation by another name (or if you are in 31 CBG, you all get tactically grouped, regardless of your size).
The CAF and the Army want trained troops, not a mile long BTL. But until the CAF implements a way to incentivize getting rid of stale DP1 soldiers and the borderline NES, Units will continue to take advantage of the benefits and safeties of having a large on paper strength with a large non-employable cohort.