Bottom Line Up Front: To beat Applicant Tracking Systems, use simple formatting, include exact keywords from job descriptions, avoid graphics and tables, save as .docx or PDF, and tailor each application. Over 98% of Fortune 500 companies use ATS to filter resumes, making this knowledge essential for job seekers.
What is an ATS (Applicant Tracking System)?
Quick Answer: An ATS is software that automatically scans, filters, and ranks resumes before they reach human recruiters.
An Applicant Tracking System (ATS) is software that companies use to streamline the hiring process by collecting, organizing, and filtering resumes. Think of it as a digital gatekeeper that decides whether your resume deserves human attention.
These systems help employers manage the overwhelming volume of applications they receive. When she was a corporate recruiter, she would post a job opening and get back "over 300 applications for an entry-level position within a week". Without ATS, reviewing all these applications manually would be impossible.
Key Statistics You Need to Know
- 99% of Fortune 500 companies use ATS platforms on a regular basis
- 75% of companies use an ATS to manage their hiring process
- 75% of job applications don't get seen by human eyes
- Over 39% of Fortune 500 companies use Workday for talent acquisition
- Recent studies indicate that an effective ATS can decrease the average hiring cycle by as much as 60%
How ATS Systems Work
Quick Answer: ATS scan resumes for keywords, parse information into categories, and rank candidates based on job requirements.
Understanding the ATS process helps you optimize your approach:
The 5-Step ATS Process
- Job Details Entry: The hiring team inputs the job title, required skills, experience level, education, and other key qualifications into the ATS
- Resume Upload & Scanning: When candidates apply, the system uploads their resumes to the ATS, which scans and extracts important details like contact info, work history, education, and skills
- Keyword Matching: Applicant tracking systems work by scanning your submitted resume and cover letter to find keywords that match the job posting
- Candidate Screening: The ATS compares each resume against the job criteria, filtering out candidates who don't meet the minimum requirements
- Ranking & Review: Once the ATS has narrowed the pool, recruiters and hiring managers review the top-ranked candidates
Benefits of Understanding ATS Systems
Quick Answer: Knowing how ATS works dramatically increases your interview chances and helps you compete effectively in today's job market.
For Job Seekers
- Higher Interview Rates: Candidates who include the job title on their resume are 10.6 times more likely to get an interview
- Faster Job Search: Understanding ATS helps you avoid the black hole of rejected applications
- Competitive Advantage: Most job seekers don't optimize for ATS, giving you an edge
- Time Savings: Targeted applications yield better results than mass submissions
For Employers
- 62% of teams that use an ATS find more high-quality candidates when compared to those using traditional inbound applications
- More than 86% of recruiters agree that their ATS has reduced their overall time-to-hire
- 79% of recruiters agree that the quality of their new hires has increased after implementing an ATS
Safety and Legitimacy of ATS Systems
Quick Answer: ATS systems are completely legitimate and widely used by reputable companies worldwide.
ATS systems are industry-standard tools used by virtually all major corporations and many smaller companies. They're not designed to eliminate good candidates but to efficiently manage large volumes of applications.
ATS Facts vs Fiction
| Fact | Fiction |
|---|---|
| ATS help companies manage high application volumes efficiently | ATS are designed to reject qualified candidates |
| Most ATS can read standard resume formats correctly | ATS randomly eliminate good resumes |
| Keywords help match relevant candidates to positions | Only "keyword-stuffed" resumes pass through |
Common ATS Scams to Avoid
- Resume "Guaranteed" Services: No service can guarantee ATS approval
- Hidden Keyword Stuffing: Don't copy and paste the entire job description at the end of your resumé and change the text color to white
- Expensive ATS "Hacks": Most effective ATS strategies are free and straightforward
How to Use ATS Systems Effectively
Quick Answer: Create ATS-friendly resumes with proper formatting, relevant keywords, and tailored content for each application.
Step 1: Master ATS-Friendly Formatting
Do Use:
- Standard resume format such as a reverse chronological or hybrid resume
- Standard section headings like "Professional Summary," "Work Experience," and "Skills"
- Common fonts like Garamond, Calibri, Arial, Helvetica, or Georgia
- 11–12 pt for body text and 14–16 pt for section headers
- Resume margins to about 1 inch on all sides
Don't Use:
- Graphics, diagrams, icons, symbols, or a picture of yourself
- Images, tables, and headers/footers
- Non-standard section headings like "My Journey" instead of "Work Experience"
- Multiple fonts or uncommon fonts
Step 2: Master Keyword Optimization
How to Find the Right Keywords
- Begin your search for resume keywords by carefully examining the job posting
- Collect three to five job descriptions that represent the type of position you're pursuing
- Copy and paste the job description into a free word and phrase frequency tool
- Include role-specific keywords, industry keywords, and place keywords in the right location
Keyword Placement Strategy
- Resume Summary: Begin your resume by focusing on the keywords that match your greatest strengths
- Skills Section: Focus on hard skills, tools, and certifications. Use the exact wording from the job description
- Work Experience: Weave keywords into bullet points that show how you used those skills to get results
- Job Title Inclusion: The job title is the most important keyword of all, so make sure it appears right at the top of your resume
Step 3: Avoid Common ATS Mistakes
Critical Formatting Errors
- Using graphics, tables, columns, or photos that ATS can't parse
- Inconsistent or unclear date formats (e.g., "Jan '21" or missing months)
- Saving your resume in the wrong file format (e.g., .jpg or .png)
- Placing critical information in headers or footers
Content Mistakes
- Indiscriminate keyword stuffing can lead some systems to avoid your resume
- Not spelling out abbreviations alongside acronyms
- Being inconsistent with dating and naming resume sections
Step 4: Test Your Resume
Simple ATS Compatibility Test
- Copy the entire content from your ATS-friendly resume, paste it into a plain-text document, and review the results
- If the plain-text version is missing details from your original resume, has characters saved incorrectly, or looks disorganized, then assume your resume will require editing
- Use online ATS checkers like Jobscan, Resume Worded, or SkillSyncer for detailed analysis
ATS System Alternatives and Workarounds
Quick Answer: While you can't completely avoid ATS, networking, direct applications, and LinkedIn outreach can bypass initial screening.
Direct Application Strategies
- Company Website Applications: More than half (57%) prefer to locate a position on the company's website and apply directly
- LinkedIn Networking: Connect with hiring managers and recruiters directly
- Employee Referrals: Include referrals in your application to bypass initial ATS screening
- Career Fair Networking: Face-to-face connections often skip ATS processes
Alternative Platforms for Job Searching
- LinkedIn: 68% of Gen Z said they job search on LinkedIn
- Indeed: Followed by Indeed at 51%
- Industry-Specific Platforms: Behance for creatives, GitHub for developers
- Networking Apps: Meetup, LunchMeet for professional connections
Reviews and Success Stories
What Recruiters Say About ATS
94% of recruiters agree that their ATS has had a positive impact on their organization's hiring processes. However, there are concerns about qualified candidates being filtered out.
The Challenge for Job Seekers
A study from Harvard Business Review found that 88% of employers felt that qualified, high-skilled candidates were vetted out of the process by an ATS because they "did not match the exact criteria established by the job description".
Success Metrics
- We recommend a match rate score of 75%. However, many career counselors and Jobscan users see success even with just a 65% match rate
- Users report 2-3x more interviews after optimizing for ATS
- Average time to job offer decreases by 40% with proper ATS optimization
Comparison: ATS vs Traditional Hiring
| Aspect | ATS Hiring | Traditional Hiring |
|---|---|---|
| Processing Speed | Instant automated screening | Manual review takes days/weeks |
| Volume Handling | Can process thousands of applications | Limited by human capacity |
| Consistency | Same criteria applied to all candidates | Subject to human bias and mood |
| Flexibility | Limited by programmed parameters | Can recognize unique qualifications |
Where to Find ATS-Friendly Resources
Free ATS Testing Tools
- Jobscan: Comprehensive ATS resume scanner with match scoring
- Resume Worded: Free targeted resume analysis
- SkillSyncer: Keyword optimization tool
- TopResume: Free ATS compatibility check
Professional Services
- Certified Resume Writers: CPRW-certified professionals understand ATS requirements
- Career Coaches: Provide holistic job search strategies including ATS optimization
- LinkedIn Profile Optimization: Professional services for LinkedIn presence
Market Data and Trends
ATS Market Growth
- The ATS market size was $15.03 billion in 2023
- By 2030, it is expected to reach $26.24 billion
- 25% of organizations are planning to implement an AI-driven ATS by 2027
Industry Adoption Rates
- Banking, Financial Services, and Insurance industry tops the list with 23.2%
- IT and Telecom industry with just below 20%
- While 70% of large companies use ATS, the rate is only 20% for SMEs
Frequently Asked Questions (FAQ)
Q: Can ATS read PDF files?
A: Yes, but save simple PDFs without complex formatting. Save your resume as a Word doc or PDF so ATS can read it without issues. Avoid image-based PDFs.
Q: Should I use the exact keywords from job descriptions?
A: It is important to match the spelling of the keywords you choose to the way they were spelled in the job description. Use exact matches when they accurately reflect your experience.
Q: How many keywords should I include?
A: Focus on quality over quantity. Include relevant keywords naturally throughout your resume without stuffing. Don't keyword stuff. Your resume should always be natural and easy to read.
Q: Do all companies use ATS?
A: Over 98% of Fortune 500 companies use an ATS program when hiring new employees, and 75% of recruiters use some type of recruiting or applicant tracking system.
Q: Can I bypass ATS completely?
A: While difficult to completely avoid, you can increase your chances through networking, employee referrals, and direct contact with hiring managers. A little proactive effort can go a long way.
Q: What's the biggest ATS mistake job seekers make?
A: The biggest mistakes include wrong file types, fancy designs, weird fonts, and strange section names. These formatting errors confuse ATS software completely.
Q: How long should an ATS-optimized resume be?
A: Length matters less than content quality for ATS. ATS scans focus on keywords and structure, not length. Keep it concise but thorough.
Q: Should I create different resumes for different ATS?
A: Not all ATS work the same way. Each one has its own features and algorithms. However, following standard ATS best practices works for most systems.
Conclusion
Key Takeaway: Success with ATS systems isn't about gaming the system—it's about clearly communicating your qualifications in a format that both software and humans can understand.
Mastering ATS systems is now essential for modern job searching. Successfully navigating the applicant tracking system requires a strategic approach that combines customization, optimization, and attention to detail.
Your Next Steps:
- Test your current resume with an ATS scanner
- Identify and fix formatting issues
- Research keywords for your target positions
- Create tailored versions for different job applications
- Combine ATS optimization with networking efforts
Remember, ATS loves straightforward resumes. Use simple formatting, cut back the design elements, and naturally include keywords from the job description. The goal is to get your resume in front of human decision-makers who can truly evaluate your potential.
While ATS systems may seem like obstacles, they're simply tools that require understanding and adaptation. By following the strategies in this guide, you'll significantly increase your chances of landing interviews and ultimately securing your desired position. The investment in creating ATS-friendly applications will pay dividends throughout your career as these systems become increasingly sophisticated and widespread.