What is ATS? Your Job Application Guide
Learn how Applicant Tracking Systems really work, debunk common ATS myths, and optimize your resume today to pass screening and impress human recruiters.
Imagine sending your carefully crafted resume out into the world, hoping it catches the eye of a hiring manager who recognizes your potential. But what if your application goes through a system first?
That’s where an Applicant Tracking System (ATS) comes in. An ATS is software that companies use to streamline their hiring process. Think of it as a digital assistant that keeps everything organized—from posting jobs to onboarding new hires. It stores resumes, cover letters, and contact details in a searchable database.
With the huge number of applications companies get, ATS is a lifesaver. It automates key steps such as scheduling interviews and sending updates to candidates. This frees up recruiters to spend more time evaluating top candidates instead of getting bogged down by admin work.
ATS also helps companies reach more candidates. It makes it easy to share job postings on multiple platforms, like job boards, career sites, and social media, with just a few clicks—bringing in a more diverse range of applicants. Plus, it creates a fairer process by standardizing how applications are reviewed, reducing bias, and supporting equal opportunity hiring.
It’s easy to see why ATS has become so common in hiring today. However, ATS is often surrounded by various myths. Let me help you understand how it works.
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How ATS Actually Works
Typically, after you fill out the application form, you'll upload your resume, which then gets stored directly within the company's Applicant Tracking System.
In some cases, before or after uploading your resume, you might encounter a series of pre-screening questions, often referred to as knockout questions. These are specifically designed to quickly identify candidates who meet the fundamental, non-negotiable requirements for the role, such as specific years of experience, visas, or required certifications.
This initial application stage is therefore quite important. Providing honest and accurate answers to these knockout questions and ensuring that your qualifications genuinely align with the basic requirements outlined in the job description are the very first steps to ensuring your resume makes it to the next stage, where it can be reviewed more closely by a human.
Once your resume is in the system, the ATS gets to work "reading" it through a process known as resume parsing. Think of parsing as the ATS carefully extracting all the important pieces of information from your resume, such as your name and contact details, your previous work history, your educational background, the skills you possess, and any relevant keywords that are present.
This extracted data isn't just floating around; the ATS then organizes it into a structured format within its database. This structured organization is crucial because it allows recruiters to easily search for specific qualifications and experiences across all the applications they receive. Understanding this parsing process underscores the importance of having a clear and standard format for your resume. If the ATS encounters difficulties in extracting your information due to unusual formatting or complex design elements, some of your key qualifications might, unfortunately, be missed by the system.
A primary way recruiters utilize the ATS to find suitable candidates is by searching the system's database using specific keywords. These keywords are often the same job titles, skills, and industry-specific terms that are highlighted within the job description itself.
For instance, if a job description repeatedly mentions "project management," "data analysis," and "team leadership," a recruiter might use these exact phrases as keywords in their ATS search. While older ATS relied heavily on these exact keyword matches, modern systems are becoming increasingly intelligent. They can now often recognize different variations of keywords, understand synonyms (for example, "managed projects" instead of "project management"), and even grasp the context in which certain terms are used.
However, even with these advancements, it's still generally considered best practice to incorporate the specific language and keywords used in the job description where it naturally fits your experience. This ensures that you're speaking the same language as the recruiter and that the ATS can easily identify your resume as a potential match.
After the ATS has parsed your resume and identified the keywords, some systems go a step further by ranking the submitted applications based on how closely they align with the specific requirements outlined in the job description.
This ranking process typically takes into account the density and relevance of the keywords found in your resume, as well as other important factors such as the amount of relevant work experience you possess and your educational background. People often believe that the higher your resume ranks within the ATS, the greater the likelihood that it will be presented to a human recruiter for further review.
But this is not entirely accurate, as not all systems offer this functionality. Even when companies use it, the results can be unreliable. For instance, your score may be unfairly reduced simply based on your location.
Myths About ATS: Separating Fact from Fiction
There are many misunderstandings circulating about Applicant Tracking Systems. Let's clear up some of the most common ones:
Myth 1: ATS Automatically Rejects Resumes That Aren't a Perfect Match
The Misconception: Many believe that if their resume doesn't align 100% with the job description, the ATS will automatically discard it.
The Reality: The main job of an ATS isn’t to rank resumes by relevance—it’s to store them and keep them in the hiring funnel so recruiters can review them later. While certain "knockout" questions can filter out candidates lacking essential qualifications, most ATS systems are designed to assist recruiters in keeping order in their resume review. Ultimately, human recruiters review these applications to make final decisions.
Myth 2: Only Keywords Matter in ATS
The Misconception: It's commonly thought that stuffing a resume with keywords is the sole way to get noticed by an ATS.
The Reality: While keywords are important, modern ATS parses your resume into boxes/categories. They consider factors like work experience, education, and even geographic location. If a recruiter is searching for someone based in London, an ATS (Applicant Tracking System) can help identify the right candidate within the database. Think of it as Google for recruiters – you input the specific details of the person you’re looking for, and the ATS provides a list of candidates whose resumes match the keywords.
Keep in mind that recruiters or hiring managers are still reading your resume. If you get rejected, it could be for a few reasons—maybe you didn’t pass the knockout questions, your resume isn’t highlighting your value, or you just might not be the right fit.
Myth 3: ATS Require Exact Keyword Matches
The Misconception: Some job seekers believe that unless they use the exact wording from the job description, the ATS won't recognize their qualifications.
The Reality: Modern ATS are equipped with advanced algorithms that recognize synonyms and related terms. For instance, "project management" and "managed projects" can be interpreted similarly. It's beneficial to use natural language and relevant synonyms, ensuring the resume remains authentic and readable. Remember, keywords alone don’t show the value. If you want to boost your chances, try using the XYZ formula.
Myth 4: Graphics, Tables, and PDFs Always Break ATS
The Misconception: There's a belief that using graphics, tables, or submitting resumes in PDF format will cause ATS to misread or reject them.
The Reality: Most modern ATS can handle simple formatting elements and PDFs. However, overly complex designs, intricate tables, or unconventional fonts can pose challenges. To ensure optimal readability, it's advisable to maintain a clean and straightforward resume format. These resume templates are designed to work seamlessly with any ATS, making them the ideal choice for your job search.
Myth 5: ATS Eliminates the Human Element in Hiring
The Misconception: Some think that ATS has replaced human recruiters, making hiring decisions solely based on algorithms.
The Reality: ATS are tools designed to assist recruiters by streamlining the initial stages of the hiring process. They help in organizing applications and highlighting potential matches, but the final decisions rest with human professionals who assess candidates' fit beyond what's on paper. Rejection typically occurs due to your responses to knockout questions or a decision made by a recruiter or hiring manager.
Myth 6: You Can Trick ATS with Keyword Stuffing
The Misconception: Some believe that repeating keywords excessively or using hidden (white) text can game the ATS into ranking their resume higher.
The Reality: Modern ATS are sophisticated and can detect unnatural keyword usage. Overloading a resume with repetitive terms can make it appear spammy and may deter human reviewers. It's essential to integrate keywords naturally within the context of genuine experiences and achievements.
Myth 7: Spelling Errors Lead to Automatic Rejection
The Misconception: There's a fear that a single typo can cause the ATS to discard a resume immediately.
The Reality: While ATS primarily focus on content and keywords, consistent spelling and grammatical errors can impact readability and professionalism. Such mistakes might not lead to automatic rejection but can influence a recruiter's perception of a candidate's attention to detail.
Myth 8: ATS Scores Are Infallible
The Misconception: Some job seekers assume that the ATS's ranking or score is the definitive measure of their suitability for a role.
The Reality: ATS scores are tools to help recruiters prioritize applications, but they are not the sole determinants. However, most ATS systems lack this feature, or companies are unable to use it due to local regulations or its inefficiency. Recruiters consider various factors, including interviews, references, and cultural fit, before making hiring decisions. If a company is using a ranking system, you need to know that a lower ATS score doesn't necessarily eliminate a candidate from consideration.
It's a common fear that if your resume doesn't perfectly align with every single requirement in the job description, the ATS will immediately discard it. However, the truth is that recruiters ultimately set the criteria that the ATS uses, and importantly, human beings still review the applications that the system identifies as most relevant.
While some ATS might have automated rejection features tied to specific knockout questions about essential qualifications, they generally do not discard resumes simply for lacking a 100% keyword match.
Remember the Human!
Once you’ve submitted your resume through an ATS, recruiters use the system in a couple of different ways to find candidates. The first is pretty straightforward—they manually review resumes. They’ll click on a name, check out the resume, and decide on the next steps.
Another common approach is keyword searches. Recruiters look for specific terms related to the job requirements, like certain skills, experience levels, education, or even location. For example, if they’re hiring an Accountant with GAAP knowledge and German language skills, they’ll search for those keywords. They can also use filters in the ATS to narrow down the results and find exactly what they’re looking for.
Here’s what a resume preview looks like in an ATS. You can see the candidate's name and the date they applied, and with one click, their resume pops right up. It’s super straightforward. Think of an ATS as a handy storage system, not some kind of gatekeeper.
Here’s an example of how Workday appears in practice. As shown, recruiters can view candidate names, their current stages in the hiring process, application dates, and resumes. When clicking on a resume, recruiters see a view similar to the one shown above.
There’s no scoring, no automation — just a straightforward system. Most ATS platforms function as basic digital archives, helping recruiters track candidate progress and gather feedback from interviewers. While practical, they often lack innovation or excitement.
While ATS makes the initial screening process more efficient, the human touch is still a key part of the hiring process. Skilled recruiters take the time to review resumes in detail, looking beyond keywords to get a real sense of your qualifications and experience.
They focus on the bigger picture—your skills, career growth, and how well you’d fit the role and the company’s culture. Plus, networking and referrals can often get your resume in front of a recruiter directly.
So, while it’s important to make your resume ATS-friendly, remember it’s ultimately written for a person. Your resume should tell a clear, compelling story about your career and the unique value you bring to the table.
What is ATS - Your Takeaway
So, what's the real deal with Applicant Tracking Systems? They are essentially software tools that companies use to manage the high volume of job applications they receive. Think of them as helpful (mostly!) systems that help recruiters stay organized.
They're not there to automatically reject you for not being perfect—human recruiters still make the final hiring decisions. Just focus on using relevant keywords naturally, following the XYZ formula, keeping your resume clean and simple, picking the right file format, and remembering that a real person will eventually review your application.
Your Guide to an ATS-Friendly Resume
Creating a resume that works with ATS and connects with human recruiters takes a few key strategies to get right: