If you have 10 or more reputation with the village while at war with its faction, you can still recruit from them, but this will result in less morale for that faction's troops. You get another chance to recruit any time your reputation with the village changes, so recruit before helping a villager or progressing on a quest and recruit again after the reputation changes to gain additional volunteers. The troops you get are always from the faction the village is originally from.
This fee is static, regardless of troop quality if the proposed volunteers are of a higher tier, they will still cost 10 denars each, thus saving some upgrade money. If you decide to recruit them, you will pay 10 denars each to help them with their equipment. The amount and quality of the volunteers depend on your Renown and reputation with the village. Unless the villagers dislike you, you can ' Recruit Volunteers' to your party.