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Building on similarity‐attraction theory and extending research on person–organization value congruence and organizational identification, this study examines the relationship between perceived leader–employee value congruence and leader identification. Using a two‐wave design, data were collected twice with a 6 months’ time lag from a sample of 282 employees. Utilizing cross‐lagged analyses, we examined bidirectional effects between perceived leader–employee value congruence and leader identification. The results provided support for the positive relationship of perceived leader–employee value congruence (Time 1) to leader identification (Time 2) but could not exclude the possibility of a bidirectional relationship. Overall, the study highlights the importance of value congruence for identification processes. Practitioner points HR professionals should put emphasis on values when matching leaders and employees as the employees’ overall assessment of value fit between the leader's and the employees’ values plays an important role in the employees’ identification with the leader. As more support was found for perceived leader–employee value congruence affecting leader identification than vice versa , there should be a greater focus on the employee's overall assessment of value fit with the leader than whether the employee identifies with the leader.
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