If you've ever applied for a job online, there's a good chance your resume ended up in an applicant tracking system (ATS).
ATS software has become a standard part of hiring. Companies use it to collect applications, organize candidates, and manage the hiring process. That's especially important when a single job posting can attract hundreds of applicants.
Unfortunately, ATS software has also become the source of a lot of confusion. Some job seekers imagine there's a robot reading every resume and automatically rejecting anyone who doesn't use the right keywords. The reality is usually much less dramatic.
Here's what applicant tracking systems actually do, how recruiters use them, and what it means for your resume.
What Does an ATS Do?
At its core, an applicant tracking system is a database for job applications.
When you submit your resume through a company's careers page, the ATS stores your information and makes it easier for recruiters and hiring managers to review candidates.
Most ATS platforms can:
- Collect and organize applications
- Parse information from resumes
- Search candidates by skills, experience, education, and keywords
- Track candidates throughout the hiring process
- Schedule interviews and automate some communication
Think of it less like a resume grading machine and more like a recruiting workspace.
Without an ATS, recruiters would be stuck managing hundreds of resumes manually. For larger companies, that's simply not practical.
Do ATS Systems Automatically Reject Resumes?
This is probably the biggest misconception about applicant tracking systems.
Many people assume that ATS software automatically rejects resumes before a human ever sees them. While some companies use screening questions or filtering rules, most ATS platforms are designed to help recruiters organize candidates, not replace them.
Recruiters still decide who gets interviewed.
The ATS makes it easier to search through a large applicant pool. For example, a recruiter hiring for a software engineering role might search for candidates with experience in Python, AWS, or distributed systems. That's one reason tailoring your resume to a specific job description can be helpful.
But there's usually a human involved in the process.
Why Keywords Matter
You've probably heard that resumes need keywords to "beat the ATS."
There's some truth to that, but it's often overstated.
Recruiters frequently search their ATS databases using skills, certifications, technologies, job titles, and other qualifications. If your resume uses the same language employers use in their job descriptions, it's easier for your application to show up in those searches.
That doesn't mean you should stuff your resume with keywords.
A better approach is to describe your experience using clear, industry standard language. If a job posting repeatedly mentions project management, data analysis, customer success, or React development, and those skills genuinely apply to your background, it makes sense to include them naturally in your resume.
Can ATS Software Read PDF Resumes?
In almost all cases, yes.
Modern applicant tracking systems can typically parse both PDF and Word documents. However, some systems handle formatting better than others.
If you're concerned about compatibility, keep your resume simple:
- Use standard section headings like Experience, Education, and Skills
- Avoid unusual fonts
- Skip complex graphics and text boxes
- Use a clean, easy to read layout
A resume that's easy for a recruiter to read is usually easy for an ATS to process as well.
One thing we've noticed is that many "ATS problems" are actually resume problems. If a recruiter can't quickly understand your experience, an applicant tracking system isn't going to help. Clear formatting, relevant skills, and concise accomplishments matter more than trying to game the system.
That's why most ATS advice boils down to the same fundamentals: make your resume easy to read and relevant to the role you're applying for.
Popular Applicant Tracking Systems
While there are far too many ATS out there to name them all, here are a few of the most popular and widely used:
Greenhouse
Founded in 2012 and now valued at over $1 billion, Greenhouse is a leading ATS with customers such as Pinterest, Lyft, Snapchat, and Airbnb.
Lever
Also founded in 2012, and now with over 4000 customers, Lever is a fast-growing ATS with customers such as Atlassian, KPMG, Quora, and Shopify.
iCIMS
Founded in 2000 and still going strong with over 1000 employees, iCIMS is a top ATS with Enterprise, Foot Locker, New Balance, and Verizon as customers.
Although these platforms differ in features and design, they all serve the same basic purpose: helping employers manage the hiring process more efficiently.
How to Make Your Resume ATS-Friendly
The good news is that creating an ATS-friendly resume isn't complicated.
Focus on the same things that help a human reviewer understand your qualifications:
- Tailor your resume to the job you're applying for
- Use relevant skills and terminology from the job description
- Include measurable accomplishments whenever possible
- Use clear section headings
- Avoid overly complicated formatting
- Proofread carefully
The best ATS-friendly resume is usually the best recruiter friendly resume too.
Final Thoughts
Applicant tracking systems aren't the mysterious gatekeepers they're often made out to be.
They're tools that help employers organize applications and manage hiring. While keywords and formatting can affect how your resume is processed, ATS software is only one part of the hiring process.
At the end of the day, recruiters and hiring managers are still looking for candidates who can demonstrate the right skills, experience, and accomplishments.
Your goal isn't to outsmart the ATS. It's to make it easy for both the software and the people behind it to understand why you're a strong fit for the role.
If you're updating your resume or starting from scratch, try our free resume builder. It helps you create a professional, ATS-friendly resume with clean formatting and structure.