Leadership research has traditionally assumed leadership styles predict employee outcomes. We challenge that assumption by investigating the bidirectional relationship between inclusive leadership and employees’ perceptions of inclusion. Across two daily diary studies (n=141; n=220), we consistently find that perceived employee inclusion predicts inclusive leadership ratings, emphasizing the role of employee outcomes in shaping their leadership assessments. In contrast, evidence for the reverse relationship is mixed, suggesting that inclusive leadership does not consistently predict inclusion in the short term. Drawing on Affective Events Theory and recent critiques of leadership style measures, we also examine a mediation mechanism, showing that subjective, affective leader evaluations explain how employee outcomes influence leadership ratings. These findings highlight the consequences of measurement flaws in traditional leadership research, fundamentally challenging the validity of conclusions drawn about leadership effectiveness. Our findings underscore the need to re-evaluate leadership style measures and prioritize observable behaviors to advance the field.