Generally, my follower faces the correct direction. It's just that the camera doesn't swing around behind him.

That being said, on the Test Server, /follow is having some issues in the 1.2 patch. It's breaking in far more places than is does on the Live servers. Hopefully it's just a short-term glitch and will get fixed.

Another problem currently on the Test server is that your character turns when healing. It turns to face the heal target. This is causing me problems when I see my healer on the secondary screen is standing in a red circle and needs to move, I have no idea what direction they will move when I hit my arrow keys. It's very annoying and lots of people are complaining about it on the forums, so hopefully that will get sorted out too.