What is an ATS? How Applicant Tracking Systems Work

What is an ATS?

An Applicant Tracking System (ATS) is software used by employers to manage and filter job applications. When you submit your resume online, it typically passes through an ATS before a human reviewer sees it.

The ATS serves as a digital gatekeeper, helping recruiters manage high volumes of applications efficiently. For job seekers, understanding how these systems work is essential for getting your resume in front of hiring managers.

How ATS Software Works

ATS systems perform several core functions that determine whether your application advances:

Resume Parsing

The ATS extracts information from your resume and organizes it into a structured database. This includes:

• Contact information (name, email, phone, location)
• Work experience (job titles, companies, dates, descriptions)
• Education (degrees, institutions, graduation dates)
• Skills (technical skills, certifications, languages)
• Additional sections (projects, publications, awards)

Parsing accuracy depends heavily on your resume’s formatting. Complex layouts, unusual fonts, or embedded graphics can cause parsing errors that misrepresent your qualifications.

Keyword Matching

ATS software scans resumes for keywords that match the job description. These typically include:

• Job titles matching the role or related positions
• Technical skills required for the position
• Industry terminology specific to the field
• Certifications and required qualifications
• Soft skills mentioned in the job posting

The system compares your resume content against the job requirements and calculates a relevance score. Resumes with higher keyword matches rank higher in the recruiter’s view.

Ranking and Filtering

Based on keyword matches, formatting compatibility, and other criteria, the ATS assigns scores to applications. Recruiters often set minimum thresholds and review only top-ranking candidates.

This automated filtering means qualified candidates can be overlooked if their resumes don’t align with what the ATS expects to see.

Why ATS Compatibility Matters

Many qualified candidates are filtered out because their resumes are not ATS-friendly. Common issues include:

• Complex formatting that the ATS cannot parse correctly
• Graphics and images that obscure text content
• Missing keywords that match the job requirements
• Non-standard section headings that confuse the parser
• Headers and footers containing critical contact information

Studies suggest that up to 75% of resumes are rejected by ATS before reaching human reviewers. While not all rejections are due to formatting issues, ensuring ATS compatibility removes one significant barrier.

Making Your Resume ATS-Compatible

To improve your resume’s chances of passing ATS screening:

1. Use Standard Formatting

Keep your layout simple and clean:

• Single-column format for reliable parsing
• Standard fonts (Arial, Calibri, Times New Roman)
• Clear section headings (Work Experience, Education, Skills)
• Consistent date formatting throughout

2. Include Relevant Keywords

Match terminology from the job description:

• Use exact phrases from the posting where appropriate
• Include both spelled-out terms and acronyms (e.g., “Search Engine Optimization (SEO)”)
• Distribute keywords naturally throughout your content
• Don’t keyword-stuff; maintain readability

3. Avoid Graphics and Complex Elements

Stick to text-based content:

• No images, logos, or icons
• No text boxes or shapes
• Avoid tables for core content
• Skip decorative lines or borders

4. Choose Compatible File Formats

Submit in formats that parse reliably:

• PDF (most universally accepted)
• DOCX (Word document)
• Avoid image-based PDFs or scanned documents
• Check the job posting for specific requirements

5. Use Standard Section Names

Help the ATS categorize your information:

• “Work Experience” rather than “Career Journey”
• “Education” rather than “Academic Background”
• “Skills” rather than “Areas of Expertise”

How to Check ATS Compatibility

You can verify how your resume parses using an ATS checker tool. These tools evaluate:

• Formatting compatibility
• Keyword presence and density
• Section recognition
• Overall ATS readiness score

Testing your resume before submitting helps identify issues you can fix to improve your chances.

The Balance: ATS and Human Readers

While optimizing for ATS is important, remember that humans make the final hiring decisions. Your resume needs to:

1. Pass the ATS — Get through automated screening
2. Impress the recruiter — Stand out among filtered candidates
3. Demonstrate value — Show you can do the job

The goal isn’t to trick the system but to ensure your qualifications are accurately captured and searchable. A well-formatted, keyword-optimized resume serves both the ATS and human reviewers.

Next Steps

Understanding ATS systems is the first step toward better application success. To put this knowledge into practice:

1. Check your resume’s ATS compatibility using our free tool
2. Review the results and identify improvement areas
3. Update your resume based on the findings
4. Test again to verify your changes