This is hot, I agree. I love the setup! It plays on the exhibitionist fetish along with the search for potential partners.
The ONLY part that concerns me is the workplace setting. Your wife mentioned that it "might make things at work awkward" and his reply discounted that. He could have replied with something that expressed his sharing her concern. I would be concerned about his ability to maintain his discretion.
I'm sure it can totally work given the right people and right situation. You know what they say, high rewards come high risks (well most of the time).