Applicant Tracking System (ATS): How It Works & How to Beat It

What Is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software that employers use to manage the hiring process — from receiving applications to tracking candidates through interviews. For job seekers, the most critical function of an applicant tracking system ATS resume screening is its ability to automatically filter and rank resumes based on keywords, qualifications, and formatting before a human recruiter ever sees them.

Understanding how ATS works is essential because over 98% of Fortune 500 companies use ATS, and an estimated 75% of all resumes are rejected by these systems before reaching a hiring manager.

How Applicant Tracking Systems Process Resumes

Step 1: Parsing

When you submit your resume, the ATS extracts text and categorizes it into fields: name, contact info, work experience, education, and skills. This is where formatting matters — tables, text boxes, and images can cause the parser to scramble or skip your content.

Step 2: Keyword Matching

The ATS compares your resume against the job description's requirements. It looks for specific keywords: job titles, technical skills, certifications, education requirements, and industry terms. Resumes with higher keyword match rates rank higher in the recruiter's queue.

Step 3: Ranking

Based on keyword matches and other criteria (years of experience, education level, location), the ATS assigns a score or rank to each application. Recruiters typically review only the top-ranked candidates — often the top 10-25% of applicants.

How to Get Your Resume Past ATS

1. Use an ATS-friendly resume template — Single column, standard fonts, no graphics or tables
2. Mirror the job description — Use exact keywords and phrases from the posting in your resume
3. Include both acronyms and full terms — Write "Search Engine Optimization (SEO)" so ATS catches both
4. Use standard section headers — "Work Experience," "Education," "Skills" — not creative alternatives
5. Submit in the right format — .docx or .pdf, depending on what's requested
6. Fill in all fields — Don't write "See resume" in application form fields. ATS scores completeness.

Common ATS Mistakes That Reject Good Candidates

• Fancy resume designs — Multi-column layouts, infographics, and creative templates look great but parse poorly
• Missing keywords — If the job requires "project management" and you wrote "managed projects," the ATS might not make the connection
• Non-standard file formats — Pages, InDesign, or image-based PDFs often can't be parsed
• Content in headers/footers — Many ATS systems skip header and footer content entirely
• Spelling errors in keywords — "Mircrosoft Office" won't match "Microsoft Office" in the ATS database

Popular Applicant Tracking Systems

Knowing which ATS a company uses can help you optimize your application:

• Workday — Used by large enterprises and Fortune 500 companies
• Greenhouse — Popular with tech companies and startups
• Lever — Common in mid-size tech and SaaS companies
• Taleo (Oracle) — Widely used in government and enterprise organizations
• iCIMS — Popular in healthcare, finance, and education sectors

All of these systems prioritize keyword matching and clean formatting, so the optimization strategies above work regardless of which ATS the employer uses.

Test Your Resume Against ATS

Before submitting, use a resume score checker to see how your resume performs against a specific job description. Then build your resume with EasyResume using templates designed to pass every major ATS system.

How ATS Systems Actually Parse Your Resume

Understanding the technical process behind applicant tracking systems helps you optimize your resume effectively. When you submit a resume, the ATS first converts your document into plain text, stripping all formatting. It then extracts structured data — contact information, work history, education, and skills — using pattern recognition algorithms. Finally, it scores your application by comparing extracted keywords against the job posting requirements.

This parsing process is why formatting matters so much. Headers and footers are often ignored entirely. Tables and columns can scramble the reading order. Graphics, charts, and images are invisible to the parser. Stick to a single-column layout with standard section headers like "Professional Experience," "Education," and "Skills." Use a resume builder that generates ATS-compatible formatting automatically, so you can focus on content rather than worrying about parsing errors.

Testing Your Resume Against Real ATS Systems

Before submitting applications, test your resume against ATS parsing. Upload your resume to our resume score checker to identify missing keywords, formatting issues, and optimization opportunities. Pay special attention to your keyword match rate — aim for at least 70% alignment with your target job description. Review our complete ATS keyword guide for detailed strategies on improving your match score across different industries.

ATS Optimization Checklist for Every Application

Before submitting any job application, run through this quick ATS optimization checklist to maximize your chances of getting past automated screening. First, compare your resume keywords against the job description and ensure at least 70% overlap. Second, verify your file format — submit as .docx unless the posting specifically requests PDF. Third, check that your contact information appears in the body of the resume, not in headers or footers. Fourth, confirm that every section uses a standard heading recognized by ATS parsers.

Fifth, remove all graphics, charts, logos, and photos from your resume. Sixth, spell out acronyms on first use followed by the abbreviation in parentheses. Seventh, ensure dates follow a consistent format throughout (Month Year or MM/YYYY). Following this checklist consistently will dramatically improve your application success rate. Create an ATS-optimized resume effortlessly with our resume builder.

Common Mistakes to Avoid

Even experienced professionals make resume mistakes that cost them interviews. Here are the most critical errors to watch for when working on your applicant tracking system:

• Generic content: Using the same resume for every application instead of tailoring it for each job. Hiring managers can tell when a resume is not customized.
• Missing keywords: Failing to include ATS-friendly keywords from the job description. Most companies use automated screening that rejects resumes without matching terms.
• Weak action verbs: Starting bullets with passive language like "responsible for" instead of strong action verbs like "spearheaded," "optimized," or "delivered."
• No quantified achievements: Listing duties instead of measurable accomplishments. Always include numbers: percentages, dollar amounts, team sizes, or time saved.
• Poor formatting: Using complicated layouts, graphics, or tables that ATS systems cannot parse. Stick to clean, ATS-friendly formats.

How to Make Your Resume Stand Out

Beyond avoiding mistakes, here are strategies to make your resume genuinely compelling:

• Lead with impact: Put your most impressive achievements at the top of each section. Recruiters spend 6-7 seconds on initial scans.
• Use the right format: Choose between chronological, functional, or combination formats based on your experience level and career situation.
• Write a strong summary: Your professional summary is the first thing recruiters read. Make it count with specific qualifications and achievements.
• Include relevant skills: Browse our resume skills pages to find the most in-demand skills for your target role.
• Proofread thoroughly: Use our resume score checker to catch formatting issues and keyword gaps before submitting.

Next Steps

Now that you understand the key strategies, put them into practice. Review resume examples for your specific role to see how successful candidates present their qualifications. Browse our resume templates to find a professional layout that matches your industry.

Ready to build your resume? Create your professional resume with EasyResume using ATS-optimized templates that help you land more interviews.