What Is an Applicant Tracking System?

An Applicant Tracking System (ATS) is software used by employers and recruiters to manage job applications. When you submit a resume online, it often goes directly into an ATS before any human reviews it. The system scans your resume for keywords, formatting compatibility, and relevant information to determine whether you're a match for the role.

If your resume isn't ATS-friendly, it may be filtered out — even if you're highly qualified. Understanding how these systems work gives you a significant edge.

How ATS Systems Evaluate Resumes

ATS tools primarily look for:

  • Keywords: Terms that match the job description — job titles, skills, tools, certifications, and industry-specific language.
  • Formatting compatibility: Whether the system can accurately parse (read) your resume's text and structure.
  • Relevance signals: How closely your experience, education, and skills align with the role requirements.

ATS-Friendly Formatting Rules

Many well-designed resumes with columns, graphics, headers in text boxes, or tables actually fail in ATS systems because the software can't read them correctly. Follow these formatting guidelines:

  1. Use a single-column layout. Multi-column formats confuse many ATS parsers.
  2. Avoid text boxes, headers/footers, and graphics. Content in these areas is often skipped entirely.
  3. Use standard section headings. "Work Experience," "Education," and "Skills" are universally recognized. Creative headings like "My Journey" may not be.
  4. Stick to common fonts. Arial, Calibri, Times New Roman, and Helvetica are safe choices.
  5. Use standard bullet points (•) rather than decorative symbols.
  6. Submit as a .docx or PDF. Most modern ATS systems handle both, but check job postings for preferences. If unsure, .docx is the safer choice for ATS compatibility.

Keyword Optimization: The Most Important Step

Keywords are how ATS systems match your resume to a job posting. The best source of keywords is the job description itself. Here's a process for doing this effectively:

  1. Copy the job description into a document.
  2. Highlight every skill, tool, qualification, and job title mentioned.
  3. Cross-reference those keywords against your own resume.
  4. Where you legitimately have that skill or experience, ensure the exact phrasing appears in your resume.

For example, if a job description says "proficient in Salesforce CRM," don't just write "CRM experience" — use the exact term "Salesforce" in your resume.

Where to Place Keywords

Strategically place keywords throughout your resume in natural, readable ways:

  • Professional Summary: Include 3–5 core keywords that define your expertise.
  • Skills Section: List specific tools, technologies, methodologies, and competencies.
  • Work Experience: Weave relevant keywords into your accomplishment bullet points.
  • Education & Certifications: Name certifications exactly as they appear (e.g., "PMP – Project Management Professional").

What to Avoid: ATS Red Flags

Avoid ThisDo This Instead
Tables for layoutUse plain text with line breaks
Images or logosText-only content throughout
Creative fontsStandard professional fonts
Headers/footers with key infoKeep all info in the main body
Abbreviations only (e.g., "PM")Spell out and abbreviate: "Project Manager (PM)"
Generic job titlesMirror the exact job title from the posting

Test Your Resume Before Submitting

There are free online tools that let you test how well your resume matches a specific job description — tools like Jobscan or Resume Worded can show you your keyword match rate and flag formatting issues. Even a quick self-check — pasting your resume text into a plain-text editor to see what an ATS might "see" — can reveal hidden formatting problems.

ATS Is the Gatekeeper, Not the Decision Maker

It's important to remember: the goal of ATS optimization is to get your resume in front of a human. Once it does, your content, accomplishments, and presentation take over. An ATS-optimized resume that lacks substance won't get you far — but a beautifully written resume that never gets read is equally useless. Aim for both.