You spend hours polishing your resume, making sure every skill and accomplishment shines. But despite all that effort, the interview requests aren’t coming in — even for jobs you know you’re qualified for. So what’s going on?
It could be that your resume isn’t even making it to a hiring manager’s desk. Instead, it’s being filtered out by an applicant tracking system (ATS).
ATS scans resumes for specific keywords related to the job description. If your resume doesn’t include enough of these keywords, a hiring manager might never see it.
In this article, we’ll break down what an ATS is, how it works, and most importantly, how you can optimize your resume to make sure it passes through the system and into the hands of a real person.
What is an ATS?
Online job boards like Indeed have made it easy for job seekers to submit resumes. But this means that hiring departments are flooded with resumes for every open position. To help them sort through all these resumes, employers have turned to applicant tracking systems (ATS).
An ATS is a software that helps companies manage the recruitment process. ATS does this by:
- Collecting resumes submitted online.
- Sorting them based on the job posting’s specific criteria.
- Ranking candidates by scanning for relevant keywords and qualifications.
- Filtering out resumes that don’t match the job requirements.
- Tracking each candidate’s progress through the hiring process.
By taking care of these steps, an ATS saves employers time and money while ensuring the right resumes make it through.
Who uses applicant tracking systems?
Jobscan research found that over 97.4% of Fortune 500 companies use ATS. That amounts to 487 companies out of 500. Of the remaining 13, 8 did not have a detectable ATS, which might mean that they use a proprietary system that was built in-house.
ATS isn’t just for Fortune 500 companies and large corporations. It’s used by a wide range of organizations, including:
- Staffing agencies – To quickly match candidates to jobs across different industries.
- Government organizations – For handling the complex hiring processes in the public sector.
- Mid-sized companies – To stay organized and keep up with growing applicant numbers.
- Small businesses – Particularly those growing fast or hiring for competitive roles.
- Nonprofits – To manage both paid staff and volunteer applications.
In short, any organization that deals with a large number of applicants or needs to streamline their hiring process can benefit from using an ATS.
What are the most commonly used ATS?
Using Jobscan data, we analyzed job descriptions from over 11,000 companies where an ATS was detected to see which ATS they use. Here’s what we found:
- 18.2 percent of analyzed companies use Greenhouse.
- 16.5 percent of analyzed companies use Lever.
- 15.9 percent of analyzed companies use iCIMS.
- 15.4 percent of analyzed companies use Workday.
How do applicant tracking systems work?
An ATS can do many things for employers, from organizing resumes to tracking candidate progress. But for job seekers, what really matters are these three basic steps:
- The hiring team enters details about the job opening—job title, required skills, and experience—into the ATS.
- The ATS scans incoming resumes, either ranking candidates or storing the resumes in a searchable database.
- Hiring managers can select from the ranked candidates or search the database for suitable candidates using keywords.
In other words, your resume must contain the keywords that are mentioned in the job description if you want to move forward.
For example, if a company wants to hire someone with the job title “administrative assistant” and there are 500 resumes, only resumes with the keyword “administrative assistant” will be selected or found.
If your resume doesn’t contain that keyword, it will likely be rejected—even if you’re qualified for that job!
At the very least, your resume should contain the job title, preferably in the resume headline. (Your headline is a one-line statement at the top of your resume that highlights your skills and qualifications).
How important is it to include the job title in your resume headline? Jobscan analyzed nearly a million job searches and found that resumes with the job title in the headline received 3.5 times more interview invitations!
If you can predict the keywords that an ATS will flag, you’ll increase your chances of moving forward in the hiring process. To identify these keywords, read the job description.
The best way to optimize your resume for the ATS is to use an online tool. For example, Jobscan’s resume scanner analyzes your resume against the job description and provides you with a score. The higher your score the more likely you are to get an interview.
It also tells you exactly how to increase your score by adding the skills that are missing from your resume. Here’s an example of a report produced by the resume scanner:
In the above example, adding the missing keywords “computer literacy,” “clinical administration,” and “external testing” will increase the score. This resume is well on its way to attracting the hiring manager’s attention and getting an interview.
What other features does an ATS have?
Many job seekers believe that an ATS exists solely to block their resumes from reaching a hiring manager. But ATS does more than just deal with resumes.
Here are some of the other things an ATS does:
- Schedules interviews – Takes the hassle out of setting up interviews by automating reminders and syncing calendars, so there’s no back-and-forth.
- Handles candidate communication – Provides ready-to-go email templates and automates responses, making sure candidates stay in the loop throughout the process.
- Enables team collaboration – Lets hiring teams share notes and feedback in real-time, helping everyone stay on the same page when deciding on candidates.
- Tracks hiring data – Offers detailed reports on things like time-to-hire and where candidates are coming from, giving companies insight to improve their hiring strategies.
- Integrates with other tools – Connects to CRM systems, email platforms, and even onboarding software, creating a seamless flow from recruiting to hiring.
- Tracks candidate status – Monitors candidates through every stage of the process, so no one gets overlooked.
By handling all of these tasks, an ATS helps hiring teams stay organized, communicate efficiently, and make better hiring decisions—far beyond just managing resumes.
What’s the difference between an ATS and a CRM?
When it comes to recruiting software, there are two main types:
- Applicant Tracking Systems (ATS)
- Candidate Relationship Management (CRM) Systems
Here’s a quick breakdown of each.
Applicant tracking systems (ATS)
ATS software is all about managing candidates during the hiring process. But it only tracks people who’ve already applied for a job at your company.
With the flood of resumes coming in—especially since it’s so easy to apply online—ATS help companies quickly filter out unqualified applicants.
Candidate relationship management (CRM) systems
CRMs are more about building relationships with potential candidates who haven’t applied yet.
CRM systems come with tools like email marketing, scheduling, and communication features that help companies keep in touch with prospects and engage them before they’re ready to apply.
The key difference? ATS focuses on applicants, while CRMs focus on potential candidates who might not even know they want to work for a company yet.
Many companies use both ATS and CRM to cover all their recruiting bases—from finding top talent to hiring the perfect fit.
How can you optimize your resume for the ATS?
We’ve already seen how important it is to include relevant skills and the job title on your resume. But there’s more to optimizing your resume for the ATS than including keywords.
Here are additional steps you can take to ensure your resume makes it through the ATS.
Use simple formatting
ATS software often struggles with complex formatting. Stick to a clean, simple layout—avoid tables, graphics, and images. Don’t include a photo of yourself. Use bullet points to present information, but make sure they are basic symbols, not custom icons.
Stick to standard fonts
Choose common, ATS-friendly fonts like Arial, Times New Roman, or Calibri. Avoid overly decorative fonts that may not be readable by the system.
Avoid headers and footers
Many ATS systems can’t read information placed in headers and footers. Keep all your important details within the main body of the document to ensure nothing gets missed.
Use standard section headings
Use conventional section headings such as “Skills,” “Work Experience,” and “Education.” Avoid creative headings like “My Professional Journey” which might confuse the ATS.
Tailor each resume
Tailor your resume for each job application. This improves your match rate and increases the chances of your resume getting through the ATS filters.
Use an online tool to check your resume
The above formatting mistakes can prevent your resume from making it through an ATS. To avoid that, it’s a good idea to use an online tool like Jobscan, which not only checks your keywords but also analyzes your formatting to ensure it’s ATS-friendly.
Below is an example of Jobscan’s searchability report. As you can see, the job seeker has neglected to add the job title to their resume. Remember, adding the job title results in 3.5 more interviews!
What are the most common ATS myths?
There’s a lot of confusion about applicant tracking systems (ATS) and how they work. Let’s clear up some of the most common myths:
ATS AUTOMATICALLY REJECTS QUALIFIED CANDIDATES
ATS doesn’t automatically reject anyone. It uses resume parsing to filter and rank applicants based on how well their resumes match the job description. If you don’t pass through the ATS, it’s likely because your resume isn’t tailored to the job.
ATS ONLY LOOKS FOR KEYWORDS
While keywords are important, an ATS is designed to parse your entire resume and assess how well-rounded your qualifications are—not just if you used the right words.
YOU NEED TO TRICK THE ATS TO GET AN INTERVIEW
There’s no need for tricks. Instead, focus on using the right keywords, proper formatting, and tailoring your resume to the job description. ATS is just a tool to help streamline the process, not a barrier to be beaten with shortcuts.
ATS ELIMINATES THE NEED FOR HUMAN REVIEW
ATS systems are meant to assist hiring managers, not replace them. Resumes that pass the ATS still go through a human review before any hiring decisions are made.
What is the future of applicant tracking systems?
Artificial intelligence (AI) is already reshaping recruitment, and applicant tracking software is evolving right alongside it.
Today’s AI-powered applicant tracking systems don’t just screen resumes—they can identify top candidates, handle parts of the interview process, and even help conduct background checks. As AI continues to improve, so will ATS.
In the future, we’ll likely see ATS more deeply integrated with social media platforms like LinkedIn, helping recruiting teams find job candidates even if they haven’t applied yet.
Chatbots might also become a standard feature, instantly answering candidates’ questions and providing updates. This would make the whole talent acquisition process smoother.
Ultimately, AI is set to make recruitment faster, easier, and more personalized for both job seekers and employers.
Key takeaways
- ATS screens resumes for relevant keywords, and if your resume isn’t optimized, it may never reach a hiring manager.
- Over 97% of Fortune 500 companies and many smaller organizations rely on ATS to manage large applicant volumes.
- ATS ranks resumes based on job-specific keywords, with the job title in your resume being crucial for passing the filter.
- ATS also schedules interviews, handles communication, tracks hiring data, and integrates with other tools to streamline the application process.
- ATS manages applicants, while CRM focuses on building relationships with potential candidates who haven’t applied yet.
- Use simple formatting, standard fonts, and clear headings. Tools like Jobscan can help check your resume’s ATS compatibility.
- ATS doesn’t replace human review or reject qualified candidates. It simply helps hiring managers filter job applicants more efficiently.
- AI will further enhance ATS by integrating with platforms like LinkedIn and using chatbots to make the recruiting process faster and more personalized.
FAQs
ATS stands for Applicant Tracking System. It’s computer software that companies use to manage resumes and screen candidates during the hiring process.
An ATS resume is a resume tailored to the job you’re applying for, using relevant keywords and the job title from the job description. The goal is to ensure the resume matches what the applicant tracking system is looking for, increasing the chances it gets through to a hiring manager.
Employers use ATS to manage the hiring process more efficiently. They search resumes for specific keywords and job titles that match the job description. This helps HR departments quickly filter through large volumes of resumes and focus on the most qualified candidates. ATS can also schedule interviews and handle email communications.
Over 97% of Fortune 500 companies use ATS. But it’s not just large corporations—staffing agencies, government organizations, mid-sized companies, small businesses, and nonprofits also rely on ATS to handle the high volume of applications and streamline recruitment.
All ATSs recognize Word documents. Most of them can also read PDF files.
The best way to see if your resume is ATS friendly is to use a resume scanner like Jobscan’s.
Yes, small companies do use applicant tracking systems for resume screening, especially those experiencing growth or handling competitive job roles. Studies show that around 35% of small businesses now use ATS and that number is rapidly growing.
Some of the best ATS providers include Lever, Greenhouse, Taleo, and iCIMS.
Companies ask you to re-enter your info because ATS systems sometimes don’t pull all the details correctly from your resume. It ensures everything is accurate and helps the hiring process run smoothly.
