9 Things You Need to Know About ATS in 2024

What Is an Applicant Tracking System?

An Applicant Tracking System, or ATS for short, is a type of software companies use to manage job applications.

The ATS collects, scans, sorts, and ranks resumes before they reach hiring managers. When you submit a job application online, the ATS is usually the first to see your application. 

While there are different types of ATS, they all have one main purpose – to help employers manage the tons of resumes they receive and save the hiring manager's time by filtering only what’s relevant for them.

The ATS does this by scanning resumes for relevant keywords, such as job titles or specific skills that align with the employer’s requirements.

Based on that, the ATS assigns each application a resume score, reflecting how well it matches the criteria set by the employer. The higher the resume score, the bigger the chance the resume makes it to a hiring manager’s desk.

So, anyone who doesn’t meet the minimal requirements gets disqualified.

8 Things You Need to Know About ATS

Now that you know what an ATS is, let's dive into the eight key things you should know about it!

#1. How Do ATS Work?

Hiring teams use ATS to streamline the recruitment process and navigate the sheer volume of applications they receive.

Here’s a step-by-step guide on how ATS work:

1. When a company needs to fill a role, it creates a detailed job description and “feeds” it to the ATS.
2. Based on the input, the ATS creates a detailed model of the ideal candidate, which includes key skills, qualifications, and experience. It's like a benchmark against which all resumes get measured.
3. As resumes come in, the ATS starts sorting them. It examines each application, compares it to the ideal candidate model, and assigns a score based on how closely they match.
4. The ATS filters out resumes that don't meet specific criteria, so candidates who lack keywords from the job ad or any non-negotiable qualifications get disqualified. Then, hiring managers manually go through the highest-scoring resumes to quickly identify the most suitable candidates and reach out for an interview.

When the ATS scans your resume, it searches for relevant keywords, such as job titles, skills, or educational degrees that match what the employer is looking for. 

For example, if a job requires project management skills, the ATS will search for phrases like "project manager," "managed projects," or "project management experience."

Here’s an example of a project manager resume that contains all the essential keywords:

#2. Six Key ATS Features

Applicant tracking systems come with different features designed to streamline the hiring process.

Here are six essential features that most ATS offer:

1. Resume analysis. Extract information from resumes and organize it into standardized fields for easy searching and comparison.
2. Keyword searching. Allow recruiters to search for specific skills, qualifications, or experiences across all applications.
3. Candidate ranking. Score and rank applicants based on how well their qualifications match the job requirements.
4. Integration with job boards. Automatically post job openings to multiple job boards and collect applications in one place.
5. Collaborative hiring. Enable hiring teams to share notes, evaluations, and feedback on candidates within the system.
6. Reporting and analytics. Provide insights into the hiring process, such as the duration from when a job opening is posted to when an offer is accepted, specifying the channels through which candidates were recruited, as well as diversity metrics.

#3. Who Uses ATS?

Most large corporations and midsized businesses use ATS to manage their hiring processes. Smaller companies and startups don't usually use ATS but it's becoming more popular in recent years.

The industries that use ATS most commonly include technology, healthcare, finance, and retail. Some government agencies and educational institutions might also employ this type of software but it varies on a case-by-case basis.

Interestingly, many job boards and online career portals use ATS-like systems to organize and present job listings to applicants. So, even if a small company doesn't have its own ATS, your application might still undergo a similar screening process on the job board's platform.

Essentially, if you're applying for a job online – whether it's within an international corporation, a local government office, or a growing startup – there's a good chance your application will go through an ATS screening. 

Overall, you’re better off assuming an ATS will be checking your resume anyway, so optimize it accordingly.

#4. How Accurate Are ATS?

Applicant tracking systems are constantly improving, but they’re not flawless.

These types of software are designed to follow what recruiters want and are excellent at managing loads of applications at the same time. But, they can also overlook nuances and details that a human hiring manager would notice immediately.

For example, an ATS might struggle to understand unusual job titles. It may also struggle with creative resume layouts or fail to recognize required skills described with synonyms.

To give you an idea, listing "relationship building" instead of "customer service" or "data wizardry" instead of "data analysis" might cause the ATS to overlook these key skills, as it is designed to recognize the standard term from the job description.

That being said, most modern ATS are pretty sophisticated. They can usually read different file types and recognize plenty of keywords and phrases relevant to the role’s requirements.

Here’s the thing, though – while ATS are becoming more accurate over the years, we strongly recommend you optimize your resume accordingly.

Use clear, simple formatting and incorporate keywords from the job description while highlighting any unique qualities that may capture a hiring manager's attention.

Remember, your goal is to get past the ATS and to impress a human hiring manager with the same resume!

#5. Why Do Employers Use ATS?

You might wonder why using ATS is so common across the job market.

Well, after posting a job ad, organizations can receive hundreds (or even thousands!) of applications for a single vacancy. So, hiring managers typically spend only 10 seconds skimming your resume before deciding if they should read it in detail.

And having an ATS to filter out unqualified candidates beforehand speeds up the entire process.

Let's break down most of the reasons why employers use applicant tracking systems:

• They save time. An ATS can quickly sort through a large number of resumes, so it allows hiring managers to focus on the top applicants.
• They are cost-effective. Companies can reduce costs by automating aspects of the recruitment process. An ATS costs less than paying a huge team to sort through each application manually.
• They offer an unbiased first screening. The ATS treats all applications equally, so there are fewer chances of overlooking excellent candidates.
• They lead to better candidate experience. Advanced ATS can inform candidates about their application progress instead of having them wait for a hiring manager to reply.
• They help make data-driven decisions. This type of software can create reports and analytics that allow businesses to make better hiring decisions based on actual data.
• They make compliance easier. ATS can be programmed to follow local hiring laws and regulations, which helps employers avoid legal trouble that a human mistake might lead to.
• They help build a talent pool.  Even if you aren't qualified for the position you applied for, an ATS can match you to a different job opening or keep your information on file for future opportunities. You might be ideal for a different role at the same company!

#6. Should You Over-Optimize Your Resume for ATS?

While ensuring your resume passes through an ATS is essential, focusing too much on beating the system can backfire. Many job seekers attempt to stuff their resumes with keywords or use just the right template, but this approach can hurt your chances of being selected.

It’s crucial not to lie or exaggerate qualifications to get past the ATS. Even if you manage to fool the system, interviewers will eventually question your strengths and weaknesses. Once you're in the interview, any gaps or false claims will be exposed, potentially costing you the job. 

If you don't have experience, focus on transferable skills, education, and any relevant projects or volunteer work that highlight the role’s requirements and demonstrate your ability to succeed.

#7. How Can ChatGPT Help You Check Your ATS Score?

Are you finished writing your ATS resume? Awesome! Now all you have to do is double-check that you have completed all of the checkmarks that the ATS will look for.

The simplest approach to ensure that your resume is ATS-optimized is to contact ChatGPT for assistance.

All you need to do is log into ChatGPT, open a new chat, and explain that you require an ATS check.

Next, upload the job posting and your resume to ChatGPT, and obtain an approximate ATS score as well as suggestions for revisions.

#8. What Does an ATS-Friendly Resume Look Like?

There are several ways to optimize your resume to the ATS.

First, you should always pay attention to your resume’s formatting. 

Always go for the chronological resume format – it’s the preferred format among hiring managers and applicant tracking systems. It presents your work experience linearly, starting with your most recent role and going backward.

Additionally, you should stick to a simple layout with clear headings and bullet points. Avoid using graphics or other images, since ATS systems can only read text.

Choose a professional but not overused font. Something like Roboto, Ubuntu, or Overpass would be ideal so both the ATS and hiring manager can easily read your resume

Finally, incorporate relevant keywords and phrases from the job description to show that you match the role’s requirements.

For example, if the job ad is looking for a “social media specialist” and lists corresponding skills and qualifications as requirements, your professional achievements could include a statement like "Managed social media marketing campaigns with a focus on Facebook advertising."

And if you want to make this whole thing a lot easier, you can just use an ATS-friendly resume template.

Each of these templates is developed in collaboration with hiring professionals globally to ensure you create a standout application that impresses the ATS and human hiring managers.

Here's an example of what an ATS-friendly resume looks like:

FAQs on Things You Need to Know About ATS

Are you still wondering what else you might need to know about the ATS? We've compiled a list of the most frequently asked questions to help you:

Key Takeaways

You’ve made it to the end!

Now that we covered all the essentials of the ATS, let’s do a quick recap before we part ways:

• Applicant Tracking Systems (ATS) are a type of software used by companies to manage job applications. They collect, scan, and rank resumes, and only forward the most well-qualified candidates to hiring managers.
• ATS work by creating an ideal candidate model based on the job description, and then they evaluate and assign a score to incoming resumes against this model.
• As with other technologies in the HR industry, the ATS is improving but it can still overlook qualified candidates due to formatting issues or missing keywords.
• Employers use ATS for many reasons, such as to save time, reduce costs, and make data-driven decisions.
• The best way to ensure your resume makes it past the ATS is by using a professional ATS-optimized resume template. Check out some of the templates available in our free resume builder to get started!