What is an ATS? How Applicant Tracking Systems Work and How to Beat Them
Learn what an Applicant Tracking System (ATS) is, how it works, and how to create an ATS-friendly resume that increases your chances of getting noticed by recruiters and landing job interviews.
Introduction: Why Understanding ATS is Crucial for Job Seekers
Over 97% of Fortune 500 companies use an Applicant Tracking System (ATS) to streamline their recruitment process. But did you know that your resume might be rejected by a computer algorithm before a human ever sees it?
In this guide, we’ll break down what an ATS is, how it works, and most importantly—how to optimize your resume to pass ATS filters and get more job interviews.
What is an Applicant Tracking System (ATS)?
An Applicant Tracking System is specialized HR software that helps employers manage and sort through large volumes of job applications.
Key Functions of ATS:
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Stores applicant data: Resumes, cover letters, references, etc.
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Tracks candidate progress: From application to interview.
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Automates hiring tasks: Including resume parsing, interview scheduling, and email notifications.
For job seekers, the most important takeaway is this: the ATS filters resumes based on keywords and formats. If your resume doesn’t match the job posting closely, it may never be seen by a recruiter.
How Does an ATS Work?
Step 1 – Screening Through Knockout Questions
When you apply for a job, your application first goes through knockout questions. These are typically yes/no or short-answer questions like:
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Are you willing to relocate?
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Do you have X years of experience?
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Do you hold a specific certification?
If you fail any of these, the ATS may automatically reject your application.
Step 2 – Resume Parsing and Keyword Matching
Once your resume clears knockout questions, the ATS parses it. This means the system reads and organizes your data into searchable fields. Recruiters then search using keywords related to the job (e.g., “project management,” “Python,” “sales strategy”).
Only resumes that contain the right keywords are shown in search results. Others remain buried in the system.
How Hiring Managers Use ATS to Find the Best Candidates
Recruiters use ATS platforms to perform keyword searches that match job requirements. A simple query might include:
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Job titles (e.g., “Marketing Manager”)
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Skills (e.g., “SEO,” “data analysis,” “Java”)
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Certifications (e.g., “CPA,” “PMP”)
If your resume doesn’t include these terms in a natural and relevant way, it won’t show up in their search—even if you’re highly qualified.
What is a Resume Score and Why It Matters
Some ATS platforms assign a resume score (or “Red Rank”) based on how closely your resume matches the job description. This score is calculated from:
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Relevant skills
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Work experience
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Education
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Use of job-specific keywords
To boost your resume score:
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Use keywords from the job description.
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Emphasize hard skills (e.g., “graphic design,” “Excel,” “Salesforce”).
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Tailor each resume for each job application.
How to Make Your Resume ATS-Friendly
Step 1 – Resume Formatting Tips for ATS Compatibility
To ensure your resume is parsed correctly:
1. Use standard section headers like Work Experience and Education.
2. Stick to simple fonts (e.g., Arial, Times New Roman).
3. Avoid graphics, icons, tables, or unusual symbols.
4. Submit resumes in .docx or PDF format as requested.
5. Keep margins and spacing clean and professional.
Step 2 – Use an ATS Resume Scanner
Tools like Jobscan help you scan your resume against a job description and provide a Match Report. This report will:
1. Highlight missing keywords.
2. Point out formatting issues.
3. Help increase your resume visibility in the ATS database.
Conclusion: Optimize for ATS, Land More Interviews
Understanding how an Applicant Tracking System works is key to job search success in today’s digital hiring environment. Tailoring your resume with relevant keywords, proper formatting, and clear language can significantly improve your chances of passing ATS filters and getting noticed by recruiters.