Applicant Tracking Systems 101: Level-Up Your Job Search

What Is an Applicant Tracking System (ATS)?

An Applicant tracking system (ATS) is a type of software companies use to streamline their hiring process. It helps hiring managers handle everything from receiving job applications to selecting interview candidates. 

ATS does that by automating tasks like sorting resumes, identifying keywords, and tracking applicant progress, making it easier to manage a large number of applications efficiently.

Today, the majority of companies use ATS in some form, which is why it's crucial to have an ATS-friendly resume.

If your resume doesn’t align with the system’s criteria, it might never reach human eyes, even if you're a strong candidate. This involves using simple formatting, clear keywords from the job ad, and relevant job experience to ensure your resume passes through the system smoothly.

By understanding how ATS works, you can tailor your application and improve your chances of landing an interview.

Why Do Companies Use ATS?

So why are ATS so popular?

Well, most businesses often receive hundreds (or even thousands!) of applications for a single opening. Sorting through all these applications manually would take an enormous amount of time or resources – but hiring managers usually have no more than 30 seconds to spare when reading your resume.

That’s where the ATS comes in. 

Here are the main reasons companies rely on applicant tracking systems:

• Time-saving. An ATS can quickly sort through piles of resumes in little time. It's like having a super-fast assistant who never needs coffee breaks!
• Cost-effective. Companies can save money on recruitment by automating parts of the hiring process. ATS is cheaper than hiring a team to review every application.
• Consistency. ATS ensure that all candidates are evaluated based on the same criteria, so the hiring process is fair and consistent. 
• Better candidate experience. More advanced ATS can keep applicants updated on their application status, making the process smoother for job seekers.
• Data-driven decisions. These systems can generate reports and analytics, helping companies make smarter hiring choices based on real data.
• Compliance made easy. Many ATS help companies follow the local hiring laws and regulations, so they don’t get into legal trouble because of human mistakes.
• Talent pooling. Even if you're not the right choice for the current job, an ATS can keep your information on file for future openings. You might be perfect for the next position!

How Do Applicant Tracking Systems Work?

Let's peek behind the curtain and see how an ATS works.

Understanding this process can give your job search a real edge and help you land that job interview much faster.

#1. How Does an ATS Help Hiring Managers?

As mentioned, hiring managers rely on ATS to streamline their recruitment process. 

Here's a step-by-step look at how hiring managers typically use ATS:

1. The process begins when a company has a job opening. They write a detailed job description and upload it onto the ATS.
2. Using the job description, the ATS generates an “ideal candidate” profile, outlining the necessary skills, qualifications, and experience for the role. This profile serves as a standard for evaluating incoming resumes.
3. When the company starts receiving applications, the ATS reviews them using the ideal candidate profile to compare and assign a score based on how well they align.
4. The ATS screens out resumes that don’t meet the set requirements, automatically eliminating those missing critical keywords or qualifications. This allows hiring managers to focus on the highest-ranked resumes, making it easier to spot the best candidates for the next phase.

#2. What Are Knockout Questions?

Before your application joins the ATS database, you might encounter some "knockout questions."

Knockout questions are designed to quickly filter out applicants who don't meet the basic job requirements. They're usually yes/no or multiple-choice questions that appear right after you click "Apply."

Here are some common examples:

It’s crucial to answer these questions honestly. If you don't meet the basic criteria, the ATS will automatically reject your application – before it even scans it.

While it might be tempting to bend the truth and exaggerate your work experience to get past these initial hurdles, lying on your application is a risky move that rarely pays off.

Even if you make it past the ATS, the discrepancies will come out during the interview or from any background checks the employer does on you.

This can damage your credibility and potentially ruin your chances not just for this job but for future opportunities in the field.

#3. How Accurate Is the ATS?

While ATS have come a long way, they’re far from perfect. 

These systems are designed to align with what recruiters want and are great at handling large volumes of applications. However, they can sometimes miss nuances a human could easily distinguish.

For example, an ATS might struggle with creative resume formats or fail to recognize equivalent skills described in different words. It might also have trouble interpreting complicated work histories or unique job titles.

That said, most modern ATS are pretty sophisticated. They can usually read various file formats and recognize many keywords and phrases related to job requirements, including synonyms.

But, while ATS accuracy is improving, you should still optimize your resume for computers and human readers.

Use clear, standard formatting and include relevant keywords from the job description, along with some of your unique qualities that might catch a recruiter's eye.

Remember, while the first goal is to get past the ATS, you ultimately want to impress a human hiring manager!

6 Ways to Tailor Your Resume to Beat the ATS

When you submit your resume, the ATS doesn't just store your information - it evaluates it first. Upon evaluation, the system assigns your resume a "score" based on how well it matches the job requirements. 

The resume score, usually represented as a percentage or other numerical value, determines whether your application moves forward or gets filtered out. A higher score means you're more likely to land an interview. 

So, how can you boost your resume score and increase your chances of beating the ATS? Let's dive into six effective strategies:

#1. Pay Attention to Formatting

The reverse-chronological format is your best friend when it comes to ATS. It puts your work experience front and center, arranging it from most recent to oldest. 

This layout isn't just ATS-friendly - it's also a hit with human recruiters. 

So, in 99% of cases, the reverse-chronological format is the way to go.

#2. Choose the Right File Type

PDF is your best bet for your resume. It's widely compatible with most ATS and keeps your formatting intact across any device or software the hiring manager might use to open it. 

That being said, older ATS may struggle with PDFs. That’s why you should always check the job posting first – the employer might have a preference for a certain file type. 

If they specifically ask for a Word document, it's a clear sign their ATS won’t recognize PDFs. In that case, submit a DOC or DOCX file instead.

#3. Use a Simple Layout

If you want the ATS to process your resume easily, you need a clean layout. Complex designs, overdoing the formatting with unusual fonts, or too many graphics can cause issues when the ATS tries to scan your document. In turn, it could potentially miss important information. 

To avoid this, just keep your resume layout simple and well-structured.

For example, you should always use a professional and easy-to-read font. Use a 14-16 pt font size for your section headers and 10-12 pt for the bulk of your content. 

Then, structure your achievements with basic bullet points – a solid circle or square is bound to be ATS-friendly. Fancy bullet characters like hearts, stars, 0diamonds, or anything else, on the other hand, might confuse the ATS.

Here's a quick example of what an ATS-friendly entry looks like:

#4. Include All Important Sections

Don't leave out any key information. Make sure your resume includes all the essential sections, such as: 

• Contact information
• Work experience
• Education
• Soft and hard skills 

ATS can look for specific sections, so leaving one out could hurt your score. 

If you have relevant certifications or volunteer experience, it’s good to include those too. 

The more relevant information you provide, the better your chances of matching the job requirements and landing a job interview.

#5. Incorporate Keywords From the Job Ad

Keywords are your secret weapon to beating the ATS. These are words or short phrases that relate directly to the job requirements. 

To find the right keywords, you just need to read through the job posting carefully.

There are two types of keywords you should look for job-related skills (like “data analysis” or “problem-solving”) and action verbs (such as “created”, “designed,” or “maximized,” etc.).

Let's say you're applying for a Marketing Manager position. Here’s the job ad:

It’s not hard to spot the keywords here.

Now, let’s see what they would look like added to your resume. We’ve bolded them to make spotting them easier for you:

Just remember – you don't want to go overboard! Stuffing your resume with keywords from the job ad might help it pass the ATS but it won’t impress the hiring manager, who decides if you’re worth calling in for an interview.

Above all, your resume needs to make sense. Focus on building a consistent narrative that shows why you’re the best candidate for the job.

#6. Pick an ATS Resume Template

Beware of fancy resume templates - they often spell trouble for the ATS.

Many applicants get rejected simply because their stylish resume template isn’t something the ATS can read. 

So, it's better to stick to a tried-and-tested ATS-friendly template, such as the ones in our free resume builder. 

They are developed in collaboration with hiring professionals from around the world, to ensure you can build a standout application that impresses both the ATS and human reviewers.

Choose a template, fill in your information, and have an ATS-ready resume in minutes!

ATS Resume Example

Now let's put our knowledge into practice. 

Here's an example of an ATS-friendly resume that ticks all the boxes:

FAQs on Applicant Tracking Systems

Are you still wondering something about ATS? It’s not unusual for this crucial software to leave job seekers confused. 

Let's address some of the most frequently asked questions below.

Key Takeaways 

And that’s the end of our article!

By now, you should know everything there is to know about applicant tracking systems - what they are, how they work, and what you can do to get past them.

But, before you go, let's quickly sum up everything we've learned:

• Applicant Tracking Systems (ATS) are widely used by companies to streamline their hiring process.
• To pass the initial screening, make sure you tailor your resume for each job application. The ATS scans your application for keywords you can easily find in the job ad.
• Just don’t overstuff your resume with keywords. You want it to make sense and impress an actual human hiring manager at the end of the day.
• Use a clean, simple format and an ATS-friendly file type before you submit your resume. PDF is usually a safe bet but do check the employer’s instructions just in case – they might specifically request a Word file instead.