What is an ATS? Complete Guide to Applicant Tracking Systems

Quick Answer: An ATS (Applicant Tracking System) is software used by employers to collect, scan, organize, and rank job applications. Over 97% of Fortune 500 companies use ATS. To get past ATS, your resume needs proper formatting, relevant keywords, and ATS-friendly structure.

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ATS Definition

An Applicant Tracking System (ATS) is recruitment software that helps employers manage job applications digitally. It automates the hiring process by:

• Collecting and storing resumes in a searchable database
• Parsing resume content into structured data
• Scanning for keywords that match job requirements
• Ranking candidates based on qualification match
• Filtering out unqualified applicants automatically
• Tracking candidates through the hiring pipeline

How ATS Works: Step by Step

Step 1: Resume Submission

When you apply for a job online, your resume enters the employers ATS. The system assigns your application a unique ID and timestamp.

Step 2: Resume Parsing

The ATS extracts information from your resume: contact details, work experience, education, skills. It converts your document into structured data fields.

Step 3: Keyword Matching

The system compares your resume against the job description, looking for matching keywords, skills, and qualifications.

Step 4: Scoring and Ranking

Based on keyword matches and other factors, the ATS assigns your application a score. Higher-scoring resumes rise to the top of the recruiter list.

Step 5: Human Review

Recruiters typically review only top-ranked applications. Resumes that score poorly may never be seen by a human.

ATS Statistics

Statistic	Value	Source
Fortune 500 companies using ATS	97%+	Jobscan
All employers using ATS	75%+	SHRM
Resumes rejected before human review	75%	Preptel
Recruiters who use ATS	99%	Capterra

Popular ATS Systems

• Workday: Used by large enterprises
• Greenhouse: Popular with tech companies
• Lever: Startup-focused
• iCIMS: Enterprise-grade
• Taleo (Oracle): Fortune 500 favorite
• BambooHR: Small-medium businesses
• Jobvite: Social recruiting features

How to Beat ATS

1. Use ATS-Friendly Formatting

• Simple, single-column layouts
• Standard section headers
• No graphics, tables, or text boxes
• Standard fonts (Arial, Calibri)
• PDF or DOCX format

2. Include Relevant Keywords

• Mirror language from job posting
• Include hard skills and software names
• Use both acronyms and full terms
• Place keywords naturally in context

3. Test Your Resume

Use an ATS checker like StylingCV to scan your resume and identify issues before applying.

Frequently Asked Questions

Can ATS read PDFs?

Most modern ATS can read PDFs, but some older systems prefer DOCX. When in doubt, submit in both formats if allowed, or default to PDF for newer ATS.

Do all companies use ATS?

About 75% of all employers use some form of ATS. Virtually all large companies (97%+ of Fortune 500) use ATS. Small businesses may still review resumes manually.

Can I trick the ATS?

Tricks like white-text keywords no longer work – modern ATS detect and penalize them. Focus on legitimate optimization: proper formatting, relevant keywords, and genuine qualifications.

What ATS score do I need?

Aim for 70%+ keyword match with the job description. Scores of 80-90% are competitive for high-demand roles.