This study investigates the mediator role of psychological need satisfaction for the effects of job demands and resources on turnover intentions, psychological distress, and work-to-family conflict, simultaneously at the employee and work unit levels. In doing so, we consider how need satisfaction, when considered at the work unit level, creates a context likely to play an additional role in the prediction of these outcomes. These questions were investigated using a combination of doubly latent multilevel confirmatory factor analyses and structural equation models applied to responses provided by a large sample (N = 5,716 employees nested within 50 work units) of Canadian Armed Forces/Department of National Defence personnel. The results supported the idea that work environment effects on the outcomes considered in this study were mediated by psychological need satisfaction at the individual and work unit levels and demonstrated that these associations were driven by global work environment perceptions and global need satisfaction. Furthermore, need satisfaction was found to create a context, at the work unit level, leading employees working in units including more highly satisfied co-workers to present higher levels of turnover intentions but lower levels of work-to-family conflict than would be expected based on their individual levels of need satisfaction.