How does Taunt Works in kenshi (SCARaw Guide):

just toggle it in General UI menu in-game
it will always works if on

Taunt is passive aura effect that multiply threat level of character
threat level cause AI to see said character as priority target

As you notice and will see in your game:
Taunt does not prevent non-taunters from being attacked
it just increase level of danger Taunter generate this mechanic is caused by dealing damage and stealing owned goods or freeing slaves

• Crossbows can sometimes overtake danger level from the taunter
  
• Taunt user must attack for taunt to work
  
• Taunt user must be stronger or equal to your other fighters to generate enough danger to hold priority
  
• Taunt mechanic works best with more attack slots and long range weapons

• Find squad member who have the most HP or/and highest toughness
  
• - YES it can be animal!
  
• Give him the most resisting Armor
  
• Provide them with healing kits and repair kits if needed
  
• Give them long range or good AoE weapon (polearm, sabre, long hacker, long heavy)
  
• Select just him and toggle taunt ON (make sure others have it off)
  
• You can have multiple taunts, but when everyone has a taunt, nobody has a taunt

Taunt can make wild animals or universally aggressive enemies prioritize your squad over Guards or patrols or even your own mercenaries

Sorry if guide seems long, i wanted to exhaust the topic and explain everything https://docs.google.com/spreadsheets/d/1pvr2X3ua34ItW2y-t9HlJFHKAp2o1y564tkqLvIgQNY/edit?usp=sharing
https://www.nexusmods.com/kenshi/users/16691049?tab=user+files