its 2 issues actually:
1: most combat units are staffed both by combatants and support staff. unit losses are generally in the combat staff side. ie: if a battalion is 50/50 combat/support. a loss of 15% efficiency means you likely took about 30% loss of your combat forces.(and sht really hits the fan if this loss is in the support staff meaning you know have unsupported troops out there that may no longer have stable supply or intel lines)
2: Heavy casualties have a major impact on unit morale which in turn if this unit is forced to keep fighting might lead to these losses cascading into more losses.
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