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Applicant Tracking Systems: What They Are and How to Work With Them

Applicant Tracking Systems: What They Are and How to Work With Them

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Many employers use ATS software to filter applications before a human ever sees them. Learn how these systems work and how to format your resume accordingly.

Key Takeaways

  • Most mid-to-large employers use ATS software to manage the volume of incoming applications.
  • Resumes that aren't ATS-friendly may be filtered out before a recruiter sees them.
  • Simple, clean formatting and job-relevant keywords dramatically improve your chances of passing the initial screen.
  • Tailoring your resume to each job posting — not using a generic one — is the most effective ATS strategy.
  • Networking can help you bypass or supplement the ATS process entirely.

Why ATS Software Exists

When a job posting attracts hundreds — sometimes thousands — of applications, no hiring team can manually read every resume. Applicant tracking systems solve that problem by automating the initial intake and screening process. Employers configure the software to flag resumes that contain certain keywords, credentials, or experience thresholds and to deprioritize those that don't.

Understanding this reality is not a reason to game the system dishonestly. It's a reason to present your genuine qualifications in a format and language the software can actually read. For a fuller picture of what happens after you hit 'submit,' see our overview of how the modern hiring process works.

How ATS Software Reads Your Resume

ATS platforms parse your resume — meaning they break it into structured data fields like job titles, employers, dates, and skills. How well that parsing works depends heavily on your formatting choices.

~75%

Large employers using ATS to manage applications

Industry estimates consistently suggest a substantial majority of large US companies rely on ATS platforms to handle application volume, though exact figures vary by survey and company size.

Top 25%

Resumes that typically advance past initial ATS screens

Recruiting professionals have noted that only a fraction of submitted applications clear automated filters, underlining the importance of tailored, well-formatted resumes.

Common formatting pitfalls that confuse ATS parsers include:

  • Tables and columns: Many systems read table content out of sequence or skip it entirely.
  • Headers and footers: Contact information placed here is frequently missed.
  • Images and graphics: Charts, logos, and icons are invisible to most ATS tools.
  • Unusual section headings: Labels like 'Where I've Been' instead of 'Work Experience' may not be recognized.
  • Non-standard file types: Some systems struggle with heavily designed PDFs.

A straightforward, single-column resume with standard headings and a clean font is the safest baseline. You can still make it visually appealing — just prioritize readability over design complexity.

Test Your Resume Before You Submit

Copy and paste your resume text into a plain-text editor (like Notepad on Windows or TextEdit in plain-text mode on Mac). If the content reads clearly and in logical order without any formatting artifacts, it's likely to parse well in most ATS platforms. Any scrambled lines or missing sections signal a formatting problem worth fixing.

Tailoring Your Resume to Each Job Posting

A single generic resume is unlikely to clear the ATS for most roles. The most effective approach is to customize your resume for each position by mirroring the language in the job description.

Here's a practical process:

  1. Read the job posting carefully and highlight repeated skills, required qualifications, and role-specific terminology.
  2. Compare those terms against your current resume language. Where you've done that work or hold that skill, adjust your wording to match.
  3. Prioritize hard skills, certifications, and job titles — these are the fields ATS systems parse most consistently.
  4. Don't fabricate experience. Only match terms that genuinely reflect your background.

If you haven't yet built your core resume and supporting materials, our job search preparation checklist walks you through everything to have ready before you start applying.

Working Around and Beyond the ATS

Even a perfectly optimized resume isn't guaranteed to advance — competition, internal candidates, and shifting hiring needs all play a role. That's why ATS optimization should be one part of a broader strategy, not the whole plan.

Networking can move your application to a different track altogether. A referral from someone inside the company often results in your resume reaching a human reviewer directly. Our comparison of job boards and networking lays out how both channels work in practice.

If you've been applying consistently but getting little response, the ATS may not be the only factor. Our guide to diagnosing a stalled job search can help you identify what to adjust.

Frequently Asked Questions

Not all — small businesses and startups often review applications manually. However, most mid-sized to large companies and many government employers rely on ATS software to manage application volume. If you're applying through an online portal, assume an ATS is likely involved.
A clean, single-column format with standard section headings (like 'Work Experience' and 'Education') tends to parse most reliably. Avoid tables, text boxes, headers and footers, and graphics, which many ATS platforms can't read correctly. Save your file as a .docx or plain PDF unless the posting specifies otherwise.
No — keyword stuffing often backfires. If your resume passes the ATS but reads unnaturally to a human recruiter, it will likely be rejected at the next stage. Aim to mirror the language of the job posting naturally within your genuine experience and skills.
Read the job description carefully and note repeated terms, required skills, and specific qualifications. Incorporate those exact phrases where they honestly reflect your background. Tools that compare your resume text against a job posting can help identify gaps.
Yes, in many cases. A referral or internal advocate can route your resume directly to a hiring manager, bypassing or supplementing the ATS screen. This is one reason networking remains one of the most effective job search strategies.
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Careers Editorial Team is the collective byline for our editorial team and contributor network. Articles published under this byline or an editorial pen name are researched, written, and reviewed according to our editorial standards for clarity, consistency, and independence before publication.

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