How Online Dating is Like the Job Search
SANDRA WILLIAMS-HERVE
We make decisions every day, and some of those decisions are very costly. Take, for example, buying the wrong house, the wrong car or hiring the wrong candidate .
The time you spend on one thing is taking you away from spending it on something else. Something that could be more rewarding. âWe invest in search costs because it is worth it, because we get something we really want,â said Paul Oyer, the associate professor of Economics at Standford University and the author of Everything I Ever Needed to Know about Economics I Learned from Online Dating, in an interview with Harvard Business Review.
The market for a life partner is hard to beat. Thatâs why online dating sites like Match.com, eHarmony, and Lifemates are valued at approximately $2.1 billion in the United States alone, according to market research firm Marketdata Enterprises.
The costs of search
When it comes to picking a life partner tastes vary. In an ideal world we would have the ability to meet every single person on the planet and find the perfect match, however, the world is not ideal. Perhaps thatâs why online dating continues to grow in popularity. According to Pew Research, 59% of internet users in 2013 believed online dating is a good way to meet people, a 15% increase from the 44% who said so in 2005.
Despite its setbacks, itâs a quick way to scan potential partners. You have to invest time reading profiles on websites, which, can be very costly, but it can also be very rewarding because you are going to get a better fit and a better partner as a result.
Mutual choosing
 âMutual choosing does make the market much more complicated,â said Oyer. Youâre not just settling for someone; theyâre settling for you too. Hereâs how online dating mirrors the world of recruitment. When it comes to finding a life partner, just as in looking for an employee to join your company, both sides have to agree. However, employers, job seekers and those seeking a partner are always wondering, âCan I do a little bit better?â
If a candidate keeps looking for just the right job and the employer keeps on looking for just the right person, they end up having openings that are unfilled and good candidates end up being unemployed.
Loneliness in the dating game is just as depressing as being unemployed in the job market.
Getting serious
The online dating world is notorious for expressing interest in a person but not back it up with action. An online dating site in Korea wanted to change that. They used what economists call signaling (making it expensive to show your interest). They established a policy that allowed users to send invitations for a date and limited the amount of invitations a person could send. Only two invitees could receive a virtual rose. This put the onus on people to carefully select who they wanted to give a rose to. In the end, it was very effective because people were more likely to respond to an invitation for a date if it came with a virtual rose. A virtual rose makes the market work better because it forces users to make a sacrifice for someone they are truly interested in. Â
Weeding out the players
Emailing a resume is easy. Video interviews, on the other hand, imposes artificial scarcity and weeds out the candidates that you donât want in the first round. The person on the online dating site can get a sense of how much you really want to meet them. Likewise, an employer can get a clear idea of who is really interested in working for them.
At Kira Talent, weâve noticed a drop off in the amount of people who actually move forward to creating a video. This tells us whoâs just playing the field and whoâs really serious about landing the job.
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