Do you know that around 98% of companies use ATS or Applicant Tracking System? Around 75% of the resumes are disqualified by the ATS and never make it to the recruiters.
After hours of polishing your resume, assuring that every skill, every experience and every accomplishment shines in your resume, ever wondered why you didn’t get a callback?
Even after all that effort, interview requests never come in, even for the jobs that you are qualified for. This is where ATS or Application Tracking System comes in.
Table of Contents
What is an ATS
An ATS (also known as a “application tracking system”) is a software program that saves companies time and effort by analyzing resumes for keywords that define the qualifications they seek in a job prospect.
These systems scan resume text for desirable keywords and rate the resume based on how many they contain. The resumes with the lowest ratings are typically rejected without human inspection, but those with the highest scores ascend to the top of the pile for a hiring manager to begin reading.
How to Create an ATS-Friendly Resume
Want to make your resume stand out in today’s competitive job market? With most companies using Applicant Tracking Systems (ATS) to screen resumes, ensuring your document is ATS-friendly is more crucial than ever.
From using the right keywords to sticking with simple layouts, every detail matters. This guide will help you craft a resume that not only passes ATS filters but also grabs recruiters’ attention.
1. Match Keywords from the Job Description
Tailor your resume to the specific job that you’re applying for. Pick out the exact keywords from the job listing—skills, job titles, qualifications—and sprinkle them naturally into your resume. This will ensure that you’re matched with the role.
2. Keep the Layout Simple
Perhaps you’d like formatting to be flashy, but formatting is often a problem for the ATS software, so keep it plain and simple. Arial or Calibri are just fine.
Avoid tables, text boxes, or charts—you want the ATS to focus on your words, not get confused by layouts it can’t read!
3. Skip the Graphics and Images
Adding logos or images might be tempting, but most ATS systems can’t read that so avoid that and stick to text and let experience do the talking.
4. Use Common Fonts
Overly decorative or unusual fonts should be avoided; the ATS may not know what to do with them. Safety choices are Arial, Calibri, or Times New Roman. Keeping it simple will help the system understand your resume.
5. Save Your Resume as a .docx
Although PDFs look very professional, most ATS prefer .docx files. Unless the job posting explicitly asks for a PDF, save your resume in the .docx format to be safe.
6. Avoid Headers and Footers
Store important contact information in your resume body text. Headers and footers can confuse ATS software, and you don’t want it to miss important contact info about you!
7. Use Bullet Points
Bullet points make your resume easier for both the ATS and recruiters to scan. Group your achievements, responsibilities, and skills in short, clear bullet points instead of lengthy paragraphs.
8. Highlight Your Skills
Have Skills as a separate section where you list all pertinent skills likely the ATS will search for. Be sure they match up with what is in the job description. The more you can make your skills match the job description, the better chances you have to be noticed.
9. Start with Action Verbs
Begin each bullet with strong action verbs such as “Led,” “Managed,” “Created,” or “Improved.” Not only will this add a burst of energy to your resume, but it also puts the sizzle onto your keywords.
10. Double-check Spelling and Grammar
A small typo can get the ATS to totally miss keywords, so proofread very carefully. Double-check your keywords’ spelling words and minor typos and the ATS might skip over your resume.
11. Avoid Abbreviations
Some ATS systems do not read abbreviations. When you use acronyms, spell them out the first time, so, for example, Search Engine Optimization (SEO). This way you’re covered, regardless of whether the system is looking for the acronym or the full term.
12. Quantify Your Achievements
As much as possible, provide percentages, several things, or any other measure of proof of success. Did you work with a team? How much did you increase sales? Numbers say it all to both ATS and the recruiter.
Do Companies Use ATS?
According to JobScan study results, more than 98.8% of Fortune 500 organizations utilize ATS, with 66% of large enterprises and 35% of small businesses relying on them.
Using the same survey data, we examined job descriptions from over 11,000 firms where an ATS was found to determine which one they use. Here is what we found:
- Workday is used 37.1% of the time
- Success Factors is used 13.4% of the times
- Phenom People 8.7% of the time
- 6.7% is the share of Oracle ATS.
An ATS speeds up the hiring process. Moving from offline and paper-based processes to automated digital processes streamlines recruiting and hiring tasks, freeing up time and ensuring fair and best-fit hiring practices are followed.
What is the Need for ATS? Companies Perspective
While you may believe it is unfair for employers to use ATS, large corporations have compelling reasons to do so.
With the development of online job hunting, a single job advertisement might generate hundreds of applications. That is somewhat overwhelming for hiring managers, who must manually review each resume.
As a result, the ATS speeds up the initial hiring process and saves time for hiring managers looking for applicants with specific talents or expertise. According to HackerEarth, 95% of professionals believe that the ATS has benefited their firm.
Not to add, the ATS standardizes the employment process. When a robot evaluates you using the same criteria as everyone else, there is no opportunity for unconscious bias.
Applicant monitoring systems also provide valuable data and insights on hiring procedures, such as how long it takes to hire someone or where the new hire comes from. Companies may enhance their hiring tactics and improve the recruitment process with each new post they open.
How does ATS or Application Tracking System Work?
Do you know? You are 3.5 times more likely to land an interview if you match the job title in your resume headline. You must understand the core concept behind ATS’s workings.
An applicant tracking system (ATS) can help firms organise resumes and track candidate progress. However, for job seekers, what truly matters are these three fundamental 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 suitable candidates from the ranked candidates or search the database for them using keywords.
To let your resume pass through the ATS, it is essential to include accurate words in the job description. Assume you are applying for the position of “Front-End Engineer,” and the company is getting 500 resumes; it will most probably be selected if the original contains that very term.
Even if you are a highly qualified candidate, without that mentioned job title in your resume, it might not pass the test. At the very minimum, include the job title in your headline—a one-line statement at the top that brings attention to your main skills and strengths.
Application Tracking System(ATS) Vs. Candidate Relationship Management System(CRM)
Although ATS and CRM are must-have tools in recruitment, they serve different purposes. An ATS is only designed to tackle job applications, check resumes, and track candidates as they progress through the hiring pipeline. It provides an easy way of maintaining applicants who have applied for jobs.
Contrasted with that, CRM is engineered to make relationships with potential candidates and sustain them in the long run, sometimes even before the person has applied. It makes investment in passive candidates possible, thereby engaging them for future use.
This is where a CRM tends to be more task-oriented and transactional, whereas a CRM is relationship-building, and keeps a focus on long-term talent engagement.
ATS vs. CRM: Comparison Table
| Aspect | ATS (Applicant Tracking System) | CRM (Candidate Relationship Management) |
| Purpose | Manages applications from candidates who have applied for jobs. | Manages relationships with potential candidates for future roles. |
| Focus | Application tracking and hiring workflow automation. | Building and nurturing long-term relationships with candidates. |
| Candidate Type | Applicants actively apply for jobs. | Passive candidates who may be interested in future opportunities. |
| Stage of Recruitment | Middle to end of recruitment (application to hiring). | Beginning of recruitment (sourcing and engagement). |
| Functionality | Resume parsing, interview scheduling, job postings, and tracking application progress. | Candidate nurturing, email campaigns, talent pool management. |
| Interaction with Candidates | Mostly during the active hiring process. | Continuous interaction over time to build interest. |
| Recruitment Approach | Task-driven and transactional. | Relationship-driven and proactive. |
| Data Management | Stores and manages applications and applicant details. | Stores and manages contacts, potential leads, and engagement history. |
| End Goal | To hire candidates for open roles efficiently. | To keep a pipeline of candidates engaged for future opportunities. |
Common Misconceptions About the ATS or Application Tracking System
ATS Rejects Resumes Automatically
- Myth: It automatically flags and rejects resumes that do not exactly match the job description.
- Reality: Most ATS systems do not reject resumes. They simply rank resumes according to how well they match the requirements for the job you’re applying for. And that’s why, when I open my resume to call your attention to it if your resume doesn’t rank high, it won’t be on top of that pile, but it wasn’t outright rejected either.
ATS Only Looks for Exact Keywords
- Misconception: Some believe that if you don’t use the exact keywords from the job description, the ATS will ignore your resume.
- Reality: While using keywords is essential, ATS systems are getting smarter and can recognize synonyms or related terms. For example, if the job requires “project management,” an ATS might also recognize “project leader” or “project coordinator.” However, it’s still good practice to use the exact phrasing where you can.
ATS Can’t Read PDFs
- Myth: Using keywords from the job description verbatim somehow tricks the applicant tracking system into ignoring your resume if you use words other than the ones in the posting.
- Reality: Keywords are important, but ATS systems are getting smarter, and sometimes they can recognize synonyms or related terms. For instance, if a job requires something to do with “project management,” an ATS may well be smart enough to register “project leader” or “project coordinator.” However, always use the exact phrasing whenever possible.
Graphics and Fancy Fonts Improve Your Resume
- Myth: Using charts, logos, and creatively different fonts will make your resume pop.
- Fact: Graphics and funny fonts only confuse the ATS, which in turn makes it hard for the system to read and analyze your resume, therefore keep things simple with plain formatting and fonts so that everything gets parsed out correctly.
Only Big Companies Use ATS
- Misconception: People often assume that only large corporations use ATS systems, so it’s not necessary to worry about ATS for smaller companies.
- Reality: Many small and medium-sized companies use ATS systems too. As ATS software becomes more affordable, it’s being adopted by businesses of all sizes to streamline their hiring processes.
ATS Scores Resumes Based on Experience Alone
- Misconception: Some believe that the ATS is mainly looking for the amount of experience and will favour those with more years in the field.
- Reality: ATS focuses on how well your resume matches the job description based on keywords, skills, and qualifications. It’s not just about the quantity of experience, but how relevant your experience is to the role.
A Perfect ATS-Friendly Resume Guarantees a Job
- Misconception: If your resume is ATS-optimized, you’ll get an interview.
- Reality: Optimizing for ATS increases your chances of making it to the recruiter’s desk, but it doesn’t guarantee an interview. The content of your resume, your qualifications, and how well you fit the role are still key factors.
Formatting Doesn’t Matter as Long as You Have Keywords
- Misconception: As long as you use the right keywords, you don’t need to worry about formatting.
- Reality: Formatting does matter! If your resume is poorly structured or uses elements like tables, the ATS might misread it. A well-organized, clean format ensures that the ATS can correctly interpret all your information.
ATS Can’t Handle Long Resumes
- Misconception: Some people think ATS systems prefer short resumes, so they limit their resumes to one page.
- Reality: ATS doesn’t care about resume length. What matters is relevance and keywords. If you need more space to showcase your skills and experience, it’s fine to go beyond one page as long as you’re not adding unnecessary fluff.
ATS Systems Read Resumes Like Humans Do
- Misconception: People often assume that ATS reads and interprets resumes in the same way a recruiter would.
- Reality: ATS is not as intelligent as a human. It scans for keywords, filters out information based on relevance, and ranks resumes. It won’t recognize impressive formatting or soft skills unless they’re listed explicitly.
Resumes nowadays are optimized for applicant tracking systems in today’s digital hiring landscape.
It’s not more than a bonus, but more of a necessity because more than 98% of companies use an applicant tracking system, so failure to adapt would mean that your resume might never reach a recruiter-even if you’re perfect for the job.
Nest Step:
Now, that you have a good understanding of how an ATS system works, implement the right strategy on proper usage of keywords, simplicity in formatting, and not too much graphics complexity, you give yourself the very best chance.
Remember, landing a job is highly competitive: your resume is your ticket to get noticed. Don’t leave that opportunity to change and optimize for ATS.
Prince is the mind behind Interguru, a platform that helps both talent and companies grow together. He trains and writes about Digital Marketing, SEO, and MarTech, helping people build skills and grow in their careers.
