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What is a Resume Keyword-Scanning

How does ATS work? An in-depth explanation

Artwork by: Stas Podgornov

Companies are increasingly recognizing the value of applicant tracking systems in helping them quickly find applicants with the right skills and qualifications. So, how exactly does ATS work? Here’s our in-depth guide to help you beat the bots.

When you’re preparing your resume, you’ll be focused on the best way to showcase your top-flight skills, experience, and achievements in order to impress the hiring manager. But, before you get to the human eye, your resume is likely to be parsed by an applicant tracking system (ATS) to determine whether you’re a good match for the job opening.

Employers receive upward of 100 resumes per vacancy, so it makes sense that companies use ATS to manage these high-volume applications and identify the most suitable candidates for the job. So, how does ATS work and how can you make sure your resume doesn’t get thrown in a proverbial black hole? In this article, we’ll explore:

  • How does ATS software work?

  • Can ATS completely reject my resume?

  • How to beat Applicant Tracking Systems (ATS)

  • Can I test whether my resume is ATS-friendly?

How does ATS software work?

An Applicant Tracking System, or ATS, is software that automates the recruitment process for both small and large-scale companies. ATS collects, organizes, parses, and ranks job applications for open positions, making the hiring process a lot easier and efficient for recruiters.

Some ATS score resumes based on how closely they match the job description, the higher the score, the more likely you are to move forward in the hiring process. Application tracking systems can also be used by recruiters to filter applications, much like a Google search. 

For example, 100 applications may be received following a job advert and these are collated in the ATS database. Hiring managers can then filter applicants by searching the job title, such as Senior Software Engineer, and reduce the candidate pool to say 50. The recruiter will then enter more specific search criteria, such as machine learning, AI, and SQL, leading to perhaps 10 applicants who tick all the boxes. Clearly, anyone who doesn’t have the right keywords will be less likely to stand out and earn a review by the hiring manager. 

Statistical Insight

Ensuring your resume is ATS-friendly is imperative according to a recent article by Forbes. Approximately 98% of Fortune 500 companies use applicant tracking systems as well as 66% of large companies and 35% of small organizations. 

Can ATS completely reject my resume? 

Applicant tracking systems don’t reject resumes, the people who set the parameters do. However, one thing you do need to bear in mind with ATS are knockout questions. These are typically yes or no type screening questions used to instantly eliminate applicants who don’t meet the essential criteria for the role. Here’s some examples:

  • Are you legally able to work in the United States?

  • Do you have a degree in X?

  • Do you have 5+ years’ work experience in X?

  • Do you excel in busy, fast-paced work environments?

The best approach with these types of questions is to answer honestly. If you don’t meet the requirements of these deal breaker questions, your time is better spent on looking for new job opportunities that better fit your qualifications, experience, character, and work situation. 

Expert Tip

Networking can help you circumvent ATS. Connecting with recruiters at target companies via LinkedIn, requesting an informational interview, and seeking referrals from relevant employees can place you in a strong position for future job openings.

How to beat applicant tracking systems

Understanding how ATS works can increase your chances of getting hired. Here’s five top strategies to help you navigate ATS software to your advantage: 

1. Create your resume in an ATS-friendly format

Naturally, when you create your resume you’ll want it to stand out from the crowd, so you may be tempted to add some eye-catching design elements and graphics. However, it’s best to reign in your creative side as design-heavy resumes don’t perform well on ATS. Tables, images, and columns can all make your resume difficult for the software to parse. 

While a splash of color here and there is fine, try to keep your resume as simple and straightforward as possible. Basic formatting, reverse-chronological order, and traditional fonts (Arial or Calibri) work best. Applying clear headings such as “Work Experience” and “Key Skills” will help ATS identify and sort your information correctly.

2. Optimize your keywords

Including the right resume keywords is critical. These keywords need to be targeted to each specific job opportunity as much as possible. While this may be time-consuming, it’s definitely worth the effort. Tailoring your resume to each role will improve your ATS score and the chances of getting noticed when recruiters filter applications.

Review the job description and look for terms that are repeated and emphasized as important skills and experience. You should then sprinkle these keywords across your resume. This includes both hard (industry-specific) skills as well as soft skills, such as communication, creative problem-solving, and collaboration.  

3. Update your online profiles

In today’s digital age, ATS software continues to evolve and become more sophisticated. Many ATS are capable of searching the web for more information on candidates, including checking social media profiles to get a full picture of your suitability for the role and company. Updating your online presence to ensure it’s professional and aligns with your career goals is key to representing the best version of yourself to a recruiter.

Do
  • Avoid acronyms and abbreviations as the ATS may not recognize them. If the role requires KYC experience, write this out as Know Your Customer.
  • Mention employee referrals in any online applications. If you heard about the job via a contact at the company, make sure you include their name to stand out.
Don't
  • Stuff your resume with keywords. Using too many keywords could get you past ATS, but won’t make your resume readable when reviewed by a recruiter.
  • Use tactics such as pasting the job description or repeated keywords in white at the end of your resume. This can easily be detected by ATS.

4. Be selective when applying for jobs at the same company

While it’s perfectly fine to apply for multiple, similar roles in the same company, try to avoid applying for too many, vastly different roles. If you fire off 15 applications for job openings in marketing, sales, software development, and operations in the same company (even if you have the skill set for all these areas) this will raise red flags with recruiters when they review the ATS. 

5. Follow instructions

Checking the job advert for specific instructions and following these to the letter can avoid your application being filtered out by ATS. This could involve including requested information or sending your resume and cover letter in a specific document format.  

Can I test whether my resume is ATS friendly?

Employers use different ATS software and each has its own quirks, so there’s no universal test that can guarantee ATS success. However, using one of the more effective ATS checkers will help you get a good steer on whether your resume hits the mark or needs a few more tweaks.

Check out reputable sites that offer resume review options. Career.io has a great resume review tool (that’s also free!) that allows you to get the results applicant tracking systems will see when they parse your resume. You’ll also receive constructive suggestions on how to optimize the content, formatting, and overall presentation of your resume.

Key takeaways

  1. Applicant tracking systems (ATS) collect, organize, parse, and rank job applications for open positions and are used by many companies to streamline the hiring process.

  2. Creating your resume in an ATS-friendly format, keyword optimization, and adhering to application instructions will help your resume get past ATS.

  3. Don’t forget to update and maintain your online profiles so these are professional and consistent as some applicant tracking systems can collate this information too.

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