We broaden contemporary understandings of the relationship between HR practices that support work‐life balance and organizational as well as individual outcomes, through a focus on perceptual discrepancies of entitlement. To theorize this notion, we adopt the self‐perception accuracy model and extend it by investigating whether any employee/management discrepancies in perceptions of entitlement mediate the relationship between HR practices supporting work‐life balance and outcomes. We use data from 20 European countries and apply a multilevel statistical methodology. Our results did not reveal significant mediation effects, but the perceptions of managers, not of employees, are related to HR practices that support work‐life balance. Furthermore, employees tend to have higher expectations of entitlement than does management. Finally, the more aligned management and employee perceptions of entitlement, the higher the positive organizational and individual outcomes over and above contextual idiosyncrasies. Findings denote that, in achieving positive outcomes for employees and organizations, managing perceptions regarding organizational support for work‐life balance is more important than actual support practices. © 2015 Wiley Periodicals, Inc.