What is ATS and How Does It Work?
Applicant Tracking Systems (ATS) have transformed modern hiring by automating the process of sorting, filtering, and ranking job applications. This blog explores what ATS is, how it works, its impact on job seekers, and how to tailor your resume to beat the system using modern tools like Wisedoc. Whether you’re a fresh graduate or a seasoned professional, understanding ATS is the first step in making your resume work smarter, not harder.
- What is an ATS?
- What You Should Include in Your Education Section
- Template and Examples for Different Types of Applicants
- Popular ATS Tools Used by Companies
- Common Resume Mistakes That Fail ATS
- The Role of AI in Modern ATS Systems
An Applicant Tracking System (ATS) is a digital software platform used by employers and recruiters to collect, organize, and evaluate job applications. It automates the initial resume screening process, saving HR teams from reviewing hundreds of resumes manually.
With jobs attracting hundreds of applications, ATS helps:
- Streamline the hiring process
- Filter out unqualified candidates
- Ensure consistency in candidate evaluation
Over 98% of Fortune 500 companies and countless startups now rely on some form of ATS to manage their recruitment.
Here's the step-by-step process:
- Resume Parsing: ATS scans your resume and extracts structured data (contact info, work experience, skills).
- Keyword Matching: The software compares keywords from your resume with the job description.
- Scoring & Ranking: Based on keyword relevance, your resume is given a score and ranked against other applicants.
- Filtering: Only top-ranked resumes are passed on to a recruiter for review.
| ATS Tool | Used By |
|---|---|
| Workday | Target, Amazon |
| Greenhouse | Pinterest, Airbnb |
| Lever | Spotify, Netflix |
| Taleo (Oracle) | Nike, General Motors |
| iCIMS | IBM, Samsung |
| BambooHR | BambooHR Startups and SMBs |
Each platform has its own parsing strengths and keyword detection capabilities, which is why resume optimization is critical.
- Using tables, columns, or images
- Fancy fonts or graphics
- Saving in the wrong format (always use .docx or clean PDF)
- No use of job-specific keywords
- Overuse of headers and footers
- The Role of AI in Modern ATS Systems
- Use a clean, single-column layout
- Match keywords from the job description
- Label sections clearly: Work Experience, Education, Skills
- Spell out acronyms (e.g., Certified Public Accountant (CPA))
- Choose fonts like Arial, Calibri, or Times New Roman
Avoid:
- Headers/footers
- Headers/footers
- Charts or infographics
- Complex formatting
| Feature | Feature ATS-Optimized Resume | Non-ATS Friendly Resume |
|---|---|---|
| Format | Simple, one-column | Multi-column, complex |
| Keywords | Customized | Generic |
| File Type | .docx or clean PDF | Decorative PDF |
| Graphics/Images | None | Yes |
| Parsing Compatibility | High | Low |
Recruiters use Boolean search strings in the ATS database like:
"data analyst" AND SQL AND Tableau AND "remote"
If your resume lacks these exact terms—even if you're qualified—it may never appear in their results.
Modern ATS platforms are increasingly powered by AI:
- Predictive candidate matching
- Resume scoring based on context, not just keywords
- Bias detection for diversity hiring
- Skill cloud tagging for profile enhancement
In the digital age, job searching is as much about understanding algorithms as it is about showcasing your talent. The Applicant Tracking System is not your enemy—but if ignored, it can be a serious obstacle.
With the right tools and strategies, you can create a resume that not only impresses the bots but also stands out to recruiters. Let Wisedoc be your secret weapon.
ATS technology is here to stay—and it’s shaping the future of recruitment. By understanding how it works and optimizing your resume accordingly, you’re setting yourself up for success in a highly competitive job market. Platforms like Wisedoc ensure your resume is both ATS-compliant and visually compelling, giving you the best of both worlds.