What is an ATS (Applicant Tracking System)?
ATS (Applicant Tracking System) is software used by companies to manage their recruitment process. Statistics show that over 98% of Fortune 500 companies and 75% of all employers use ATS to screen resumes. This means your resume needs to pass through automated screening before it reaches a human recruiter.
The main functions of ATS include: collecting and storing resumes, parsing resume content into searchable data, filtering candidates based on keywords and qualifications, ranking applicants by match score, and tracking application status throughout the hiring process.
Common ATS Systems You'll Encounter
How Does ATS Screen Your Resume?
Keyword Matching
ATS scans your resume for keywords that match the job description. The system looks for exact matches of skills, job titles, and qualifications mentioned in the posting.
Format Parsing
ATS needs to correctly parse your resume format. Complex layouts, graphics, tables, and special characters can cause parsing errors that hide your qualifications.
Qualification Scoring
The system scores candidates based on how well their qualifications match requirements, including education, years of experience, certifications, and skills.
ATS-Friendly Resume Format Checklist
ATS systems can make errors when parsing resumes with complex formatting. Follow these formatting guidelines to ensure your resume is correctly parsed and your qualifications are visible:
Font Selection
- Arial
- Calibri
- Times New Roman
- Georgia
- Helvetica
- Garamond
- Decorative fonts
- Handwriting-style fonts
- Fonts smaller than 10pt
- Custom or rare fonts
File Format
- PDF (most cases)
- Word (.docx) if specifically requested
- Plain text (.txt) for online forms
- Image formats (.jpg, .png)
- Old Word format (.doc)
- Pages, Google Docs links
- Scanned documents
Layout Structure
- Single-column layout
- Clear section headings
- Standard date formats (MM/YYYY)
- Bullet points for lists
- Multi-column layouts
- Text boxes or shapes
- Headers/footers with key info
- Tables for layout
Section Headers
- Education
- Experience
- Work Experience
- Skills
- Projects
- Certifications
- Creative headers like 'My Journey'
- Icons instead of text
- Unconventional section names
- Missing section labels
Quick ATS Test
Copy and paste your resume into a plain text editor (Notepad). If the content appears jumbled, out of order, or missing sections, your resume likely has ATS parsing issues. A well-formatted resume should remain readable in plain text.
5-Step Keyword Optimization Strategy
Keywords are the core of ATS screening. Using keywords correctly can significantly improve your resume's pass rate. Here's a systematic keyword optimization process:
Analyze the Job Description
Carefully read the job description and highlight recurring skills, qualifications, and keywords. Pay attention to both hard skills (Python, SQL) and soft skills (leadership, communication). These are typically the focus of ATS screening.
If the job mentions 'Python' 3 times and 'data analysis' 4 times, these are high-priority keywords to include.
Identify Hard Requirements
Find the must-have qualifications in the job description, such as specific degrees, certifications, technical skills, or years of experience. Ensure your resume clearly demonstrates these qualifications.
Required: Bachelor's degree in CS, 2+ years Python experience, AWS certification → Include all three prominently.
Integrate Keywords Naturally
Incorporate identified keywords naturally into your resume content. Place them in context within your experience bullets and skills section. Avoid simply stuffing keywords, as this may be flagged as manipulation.
Instead of listing 'Python' alone, write: 'Developed automated data pipelines using Python and pandas, processing 1M+ records daily.'
Use Both Full Terms and Abbreviations
Include both the full term and common abbreviations for technical skills. ATS may search for either version, so covering both increases your match rate.
Write 'Search Engine Optimization (SEO)' or 'JavaScript (JS)' to capture both search variations.
Mirror the Job Title
If your previous job title differs from the target role but the responsibilities are similar, consider adding the equivalent title in parentheses or adjusting your title to match industry standards.
If applying for 'Software Engineer' but your title was 'Developer II', you might write: 'Developer II (Software Engineer)'
Industry-Specific Keywords to Include
Here are commonly searched keywords by industry. Click any keyword to copy it and add it to your resume where relevant.
Software Engineering
Data Science
Product Management
Marketing
Finance
Before & After: ATS Optimization Examples
Skills Section
Good at computers, know some programming, worked with data
Technical Skills: Python (Advanced), SQL (Advanced), JavaScript, React, AWS, Docker, Git Data Tools: Pandas, NumPy, Tableau, Excel (Pivot Tables, VLOOKUP, Macros) Methodologies: Agile/Scrum, Test-Driven Development, CI/CD
Experience Bullet
Helped the team with various data projects and analysis work
Developed automated data pipeline using Python and SQL, reducing manual reporting time by 80% and processing 500K+ records daily with 99.9% accuracy
Job Title
Junior Associate Level 2
Financial Analyst (Junior Associate Level 2)
Frequently Asked Questions
QWhat is an ATS and why does it matter?
ATS (Applicant Tracking System) is software that companies use to collect, sort, and filter job applications. Over 75% of medium to large companies use ATS. About 75% of resumes are rejected by ATS before a human ever sees them, making ATS optimization crucial for job seekers.
QShould I use a PDF or Word document for my resume?
PDF is generally preferred as it preserves formatting across devices. However, some older ATS systems parse Word documents better. If the job posting specifies a format, follow their instructions. When in doubt, submit a PDF but keep a clean Word version ready.
QHow many keywords should I include in my resume?
There's no magic number, but aim to naturally incorporate the most important keywords from the job description 2-3 times throughout your resume. Focus on the skills mentioned multiple times in the posting, as these are likely weighted more heavily by the ATS.
QCan I use the same resume for every application?
No. You should tailor your resume for each application by adjusting keywords, reordering bullet points, and emphasizing relevant experience. A tailored resume can increase your ATS pass rate by up to 40%.
QHow do I know if my resume is ATS-friendly?
Test your resume by copying and pasting it into a plain text document. If the content appears jumbled or out of order, ATS may have trouble parsing it. You can also use free ATS checker tools online, though they're not 100% accurate.
QShould I include a photo on my resume?
No, avoid photos on resumes for US job applications. Photos can cause ATS parsing issues and may introduce unconscious bias. Additionally, many US companies have policies against considering photos in hiring decisions.