An ATS is used by a vast majority of companies—including over 98% of Fortune 500 companies, about 66% of large organizations, and 35% of small businesses—to manage the hiring process.
An Applicant Tracking System is a software application that automates a company's recruiting and hiring process. For job seekers, the most important function of an ATS is its role as a gatekeeper, as the system scans and ranks applications based on how well they match the job description. Understanding how to create an ATS-friendly resume is the first critical step to landing an interview.
To get past the initial ATS screening, your resume must be easily readable by the software and contain the right information. Simply stating your qualifications is not enough; you must present them in a way the system can understand and process correctly.
An ATS works by scanning your resume for specific keywords and phrases that match the job description. Carefully read the job posting and identify key skills, qualifications, and responsibilities. Use the exact same phrases in your resume where your experience aligns. For example, if the description asks for "project management experience," your resume should use the phrase "project management."
Use Both Acronyms and Full Phrases: Include both the full term and its acronym to ensure the system catches it, such as "Customer Relationship Management (CRM)."
Complex formatting can confuse an ATS and cause your resume to be misread or rejected. Stick to a simple, single-column linear layout and avoid tables, columns, or text boxes.
Use Standard Fonts: Choose common, easy-to-read fonts like Arial, Calibri, Helvetica, or Times New Roman.
No Graphics or Images: Do not include photos, logos, charts, or other graphics in your resume file.
The ATS looks for specific headings to understand your resume's structure. Use common headings like "Work Experience," "Professional Experience," "Education," and "Skills." Avoid creative titles like "Where I've Been" or "What I Can Do."
Pay close attention to the file format requested in the application instructions. While PDFs are excellent at preserving your formatting, a Microsoft Word (.docx) file is also a safe choice, as virtually all systems can parse it easily.
Understanding why companies use these systems can give you a strategic advantage. Employers adopt ATS platforms, such as popular systems like Workday or Greenhouse, to manage high volumes of applications efficiently and ensure a fair, standardized process.
Time and Cost Efficiency: Manually reviewing hundreds or thousands of resumes for a single position is incredibly time-consuming. ATS automates this initial screening, allowing HR professionals to focus on the most qualified candidates who pass the scan.
Improved Quality of Shortlist: By using predefined criteria and keywords from the job description, an ATS helps create a shortlist of candidates whose qualifications appear to closely match the role's requirements. In fact, studies show 94% of recruiters feel their ATS has positively impacted their hiring process.
Compliance and Fairness: An ATS helps employers maintain compliance with hiring regulations like those from the Equal Employment Opportunity Commission (EEOC). By standardizing the initial screening process, it can help reduce unconscious bias and focus the evaluation on stated skills and experience.
While powerful, ATS platforms are not perfect. A common challenge is the system's potential over-reliance on exact keyword matching, which can sometimes filter out a highly qualified candidate who simply used different phrasing. This is why tailoring your resume for each specific application is so important.
The future of ATS lies in artificial intelligence (AI) and machine learning. These advancements are making systems smarter, enabling them to understand the context of a resume beyond just keywords. This evolution includes more precise candidate matching, identifying the characteristics of previously successful hires, and using predictive analytics, which will continue to shape how job seekers and employers connect.