Like Current Layer in AutoCAD, Revit's Active Workset is now everyone's nemesis. Each of you must be sure the correct Active Workset is selected before starting any work. Likewise if you change your focus, you need to get in the habit of considering what the current Active Workset is and what it should be now that you're changing gears. If you forget to do this then you've just created new busy-work to reassign all those elements to the correct workset.

The worksets you choose to create should be granular enough that people can isolate meaningful work, work that can be done alone without loading a lot of the rest of the project. Worksets assigned to floors (levels) of the building can make sense in a tall building but less so when that tall building is very repetitive and a user must go up and down the building frequently. Too granular though and you end up having to open them all most of the time anyway, so little benefit in the end.

Sprawling projects often work best assigned to geographical worksets like West, East, North and South wings. If the project is broken into partial plans that's a clue that this approach might work well. If the project doesn't seem to support that approach then its program might work better. Like for a hospital where there are labs, admitting, hospital rooms for regular care and intensive care and so on. When there are experts in the office for such things that can be a clue that worksets that permit users to isolate the work those experts deal with will be helpful. If I specialize in the design of the labs I probably don't need to load all the model data for the hospital rooms or vice versa.

I wrote a blog post called How Many Worksets do I Need if you're interested. I mention a number of the common worksets people use.

Thank you for all the comments everyone. I changed all of this this afternoon so we have half a days work done and the worksets seems to be doing the trick exactly how we wanted....for now

Well, mostly.
If you follow good Workset practice and make a new Local Copy every time you open (or at least once a day), your default opened worksets will be set to whatever they were when the last person to Sync had them set to.
You can alleviate some of that by changing the default Open Worksets option to Specify. That has to be done when you create the Central. If you've already got a Central file, you'll have to do a Save As, and check the "Make this a new Central" box. Of course, after that, everyone must make a new Local

Yes, that is the idea behind worksets

So regardless of people syncing back to the central model people can still use the worksets independent of each other?

Indeed would help.

I normally setup my projects with worksets for building elements (what would be part of the General Contractor model) and FF&E for every zone (and/or levels).
Each member of the team will choose the worksets to be open independently, as opening/closing a workset is a matter of content being visible to you, to release computer memory from refreshing every component's views, besides having control over a part of the project.