If you don’t know what an ATS is, you’re not alone. Most job seekers aren’t aware that their resume could be rejected by a computer algorithm without a hiring manager ever seeing it – even if they’re qualified for the job.
Applicant Tracking Systems (ATS) have been around since the late 1990s, but they became widely popular in the early 2000s as companies started shifting to digital recruitment. The rise of online job boards like Monster and LinkedIn in the 2000s further increased the need for ATS solutions. By the 2010s, ATS usage had become mainstream, especially among mid-to-large-sized companies looking to automate hiring processes.
Today, over 98% of Fortune 500 companies and a significant number of small and medium-sized businesses use ATS to streamline recruitment. The technology continues to evolve with AI-powered resume screening, advanced analytics, and integrations with HR management systems.
An applicant tracking system (ATS) is computer software that human resource departments use to process the overwhelming number of applications they receive for job openings. Specifically, the ATS:
- Stores job candidate information like resumes, cover letters, references, and other data.
- Tracks job candidates and their application status throughout the hiring pipeline.
- Automates time-consuming tasks such as manually screening applicants, reading resumes, scheduling interviews, and sending out notifications.
In today’s competitive job market, businesses receive hundreds, sometimes thousands, of job applications for a single position. Managing this volume manually is not only time-consuming but also inefficient. This is where an Applicant Tracking System (ATS) comes into play. An ATS is a software solution designed to automate and streamline the hiring process, making it easier for recruiters and HR professionals to track, filter, and manage applications.
Learn more how AI is changing the game in recruitment landspace
How Does an ATS Work?
An ATS operates as a centralized database where all job applications and candidate information are stored. It automates various stages of recruitment, from posting job openings to screening resumes and scheduling interviews. Here’s a breakdown of how it typically works:
- Job Posting: Recruiters can post job openings on multiple platforms, including job boards, company websites, and social media, directly through the ATS.
- Resume Screening: The system scans resumes for relevant keywords, skills, and experience, helping recruiters shortlist the most qualified candidates.
- Candidate Tracking: Each applicant’s progress is tracked throughout the hiring process, ensuring transparency and organization.
- Interview Scheduling: ATS software often integrates with calendar tools to facilitate seamless interview scheduling.
- Communication & Collaboration: Recruiters can communicate with candidates, share notes, and collaborate with hiring managers within the system.
When you submit your application, it usually goes straight into an ATS database. But first, you might see some knockout questions.
Knockout questions can be in the style of checkboxes or short answer questions. If you answer any of the knockout questions unsatisfactorily, your resume will either be flagged or automatically rejected by the ATS.
Examples of knock-out questions:
- Are you willing to relocate?
- Are you willing to travel as part of this job?
- Are you willing to work full-time?
- Do you have X years of experience?
- Do you have a [specific degree or certification] required for this position?
After presenting you with knockout questions, the ATS scans your resume and parses it. This involves sifting through your information and converting it into a structured format.
This information is stored in the ATS tracking database. When recruiters want to find suitable job candidates, all they have to do is search through the database for them.
How Do Hiring Managers Use ATS to Find Candidates?
Hiring managers use keywords to find suitable job candidates in the ATS database. A keyword can be a single word or a phrase. Most keywords are job titles or skills.
For example, if a hiring manager is searching for a dental assistant, they might type the keyword “dental assistant” into the ATS search bar.
Hiring managers can also type in multiple terms. For example, “dental assistant” might be combined with “X-ray certification” and “patient care.”
Resumes that contain all three keywords will appear to the hiring manager. Resumes that don’t contain all three keywords will remain hidden in the ATS database.
Key Benefits of an ATS
- Saves Time: Automating resume screening and other repetitive tasks significantly reduces the time spent on hiring.
- Improves Quality of Hire: ATS helps identify top candidates by filtering out unqualified applications based on predefined criteria.
- Enhances Candidate Experience: Streamlined communication and a structured process make the application experience smoother for job seekers.
- Ensures Compliance: Many ATS solutions help businesses stay compliant with employment laws by maintaining proper documentation.
- Facilitates Data-Driven Decisions: Employers can access hiring analytics and reports to refine their recruitment strategies.
Who Should Use an ATS?
An ATS is beneficial for companies of all sizes. Large corporations with high-volume hiring needs can use ATS software to manage large pools of applicants efficiently. Small and mid-sized businesses can also benefit by improving their hiring processes and reducing administrative burden. Additionally, staffing agencies and recruitment firms rely on ATS to manage multiple client accounts and candidate pipelines effectively.
What is an ATS Resume?
An Applicant Tracking System (ATS) resume refers to a resume that is specifically optimized to pass through an ATS screening process. Since many companies use ATS software to filter and rank job applications, a well-optimized ATS resume increases a candidate’s chances of getting noticed by recruiters.
An ATS resume is structured and formatted in a way that allows the system to extract and analyze key information, such as work experience, skills, and education. It ensures that the resume passes the initial automated screening so that it reaches a recruiter or hiring manager.
Best Practices for an ATS Resume
To maximize your chances of passing an ATS screening, follow these best practices:
- Use Relevant Keywords – Extract key terms from the job description and include them naturally in your resume.
- Stick to Simple Formatting – Avoid tables, columns, images, and fancy fonts, as ATS software may struggle to read them.
- Use Standard Headings – Label sections clearly with common headings like “Work Experience,” “Education,” and “Skills.”
- Submit in an ATS-Compatible Format – Preferably use .docx or a simple .pdf (some ATS struggle with complex PDF formatting).
- Avoid Special Characters – Stick to plain text and standard bullet points.
Step-by-Step Guide to Creating an ATS Resume
- Analyze the Job Description – Identify essential skills, experience, and keywords.
- Choose a Simple, Clean Format – Use a one-column layout with clear headings.
- Incorporate Keywords Naturally – Place relevant terms in the skills, experience, and summary sections.
- Write a Clear Work Experience Section – List job titles, company names, and dates in a consistent format.
- Avoid Fancy Design Elements – No graphics, logos, or multiple font styles.
- Save in an ATS-Friendly Format – .docx is the safest option, followed by a properly structured PDF.
- Test Your Resume – Use an ATS resume checker to ensure it’s optimized before submitting.
What is a Resume Score and How Can You Increase It?
Some ATS score resumes based on how closely they match the job description. This score is based on your resume as a whole. It takes into account your work experience, skill set, education, and more.
If your resume doesn’t have a high enough score, it might not be considered for further review. Here’s an example of how the ATS called Taleo scores resumes (it uses the term “Req Rank” instead of score). The higher your score, the better your chances of getting an interview.
To increase your score, read the job description and highlight the keywords that appear most frequently. Pay particular attention to keywords that are hard skills.
Hard skills are specific abilities that are usually acquired through training or education. Examples of hard skills include graphic design, Salesforce, data analysis, project management, Python, and SEO.
In other words, try to use the same words on your resume that the hiring manager used in the job description. This will make your resume easier to find, resulting in more job interviews.
Choosing the Right ATS
When selecting an ATS, businesses should consider factors such as ease of use, integration capabilities, customization options, pricing, and customer support. Some of the popular ATS solutions in the market include:
- Workday Recruiting
- Greenhouse
- Lever
- iCIMS Talent Cloud
- Hirelens
Final Thoughts
As businesses strive to attract and retain top talent, adopting an ATS is no longer a luxury but a necessity. By automating time-consuming tasks, improving candidate evaluation, and ensuring a smooth recruitment process, an ATS can help organizations build stronger, more efficient hiring strategies. Whether you’re a startup or a multinational corporation, investing in an ATS can significantly enhance your talent acquisition efforts.
