My squad are Lemmings how do I fix this?

This post is 8months old at the time I am writing this reply, so it could be that the AI has been updated/improved since the OP.

If not, there are mods which one could run which are meant to improve AI behavior. Have a look on armaholic.com.

Some examples of such mods are:

  • bCombat
  • Fire-Fight Improvement System
  • Vcom AI

But you'll just have to experiment with them to found one that works for you.