A lot of times groups will decide not to join larger squads since they then will lose their group in the larger squad when trying to orientate themselves to each other. In different parts of the game that will then have varying levels of impact on any sort of organized play. It would be helpful to allow a sub-group to have a different color designation from the overall squad color to allow them to still see the squad but have their group members stand out from the bigger squad.
Appreciate your time.
GW/PoTBS/WAR/Rift/WAR/GW2/CU
De Mortuis Nil Nisi Bonum.