ATS-Friendly Resumes: A Job Seeker's Guide

Applicant tracking systems (ATS) are software tools that companies use to manage job applicants. Essentially, an ATS is a repository that holds applicant data and information. In this article we discuss ways candidates can identify and use the right keywords to pass the applicant tracking system.

What is an ATS?

When you apply, your resume gets scanned and stored in the system. Recruiters then search this database using keywords and filters, rather than reading every resume manually.

Surveys show that 75% of recruiters use some type of ATS in the hiring process, and over 98% of Fortune 500 companies use an ATS. This means before a human ever sees your resume, an ATS likely ranks it. It's often not a "magical AI score," but rather a way to organize the chaos of thousands of applicants. In short, a good resume still needs to stand out, but making it ATS-friendly ensures it makes it through the first filter.

Why ATS matters

Modern ATS software parses resumes by extracting key details (job titles, skills, education and so on) into a structured format. Recruiters can then search for candidates by entering specific keywords and criteria.

For example, if a hiring manager searches for "MBA, finance" or checks experience in "Python," the ATS will retrieve only resumes containing those terms. In practice, 99.7% of recruiters said they use keyword filters in their ATS.

How ATS scores resumes

Behind the scenes, most ATS platforms use algorithms (and increasingly AI) to score resumes. An ATS will assign points for various factors: matching job titles, listed skills, years of experience, education, certifications and more. Some systems even use "knockout" questions ("Do you have a specific certification?") and immediately reject candidates who answer "no."

Because of this matching process, if your resume doesn't contain certain keywords or exactly phrased requirements, the ATS might rank you low or miss you entirely. A 2021 Harvard Business School and Accenture study, Hidden Workers: Untapped Talent, found that 88% of employers agreed qualified candidates were screened out because they did not match the exact criteria in the job description. As a result, it's vital to read the job description carefully and mirror its language on your resume.

Key formatting rules for ATS-friendly resumes

When it comes to formatting, simplicity is best. An aesthetically pleasing design may impress a human, but won't do much to impress an ATS.

• Use a chronological (or hybrid) format. Reverse-chronological resumes are easiest for an ATS to parse. Avoid a purely functional (skills-only) resume, which can confuse the system.
• Avoid complex formatting and graphics. Keep your layout linear and left-to-right. Do not use tables, images, charts, multi-column designs, headers or footers. Content there may be skipped or garbled.
• Use standard fonts and sizes. Arial, Calibri or Times New Roman. No fancy fonts or excessive styling.
• Use the right file type. PDF and Word (.docx) are often safest. Avoid image-based PDFs.

Conclusion

An ATS is a critical gatekeeper in hiring. By understanding how ATS software works and optimizing your resume's format and language, you greatly improve the odds of landing a job interview and your desired role.

For more information on ATS-optimized resumes, email info@resumecanada.ca or see our services and prices.