What is an ATS and how does it work?
An Applicant Tracking System (ATS) is software that companies use to manage the flood of job applications they receive. Large companies routinely receive hundreds of applications per position. An ATS automatically parses, sorts, and ranks every resume before a human reviews anything.
The system scans your resume for:
- Keywords that match the job description
- Standard section headings it can recognize
- Clean, parseable text (not images or tables)
- Relevant skills, job titles, and qualifications
Resumes that score above a threshold get forwarded to a recruiter. Resumes that score below it โ regardless of how qualified the candidate actually is โ get automatically rejected or buried.
Studies estimate that over 90% of Fortune 500 companies use ATS software. Even smaller companies increasingly use tools like Greenhouse, Workday, Lever, and BambooHR. If you're applying through a company's website, an ATS is almost certainly involved.
The most common reasons resumes get rejected by ATS
Most ATS rejections fall into a handful of predictable categories:
1. Missing keywords
The ATS compares your resume against the job description. If the posting asks for "project management" and your resume says "led projects," the system may not make the connection. Exact or near-exact matches score higher.
2. Unreadable formatting
Multi-column layouts, tables, text boxes, headers and footers, and graphics-heavy designs look beautiful to a human but break ATS parsers. The system sees jumbled text or skips sections entirely.
3. Non-standard section headings
ATS systems look for headings like "Work Experience," "Education," and "Skills." If you label your experience section "My Story" or "Professional Journey," the system may not recognize it at all.
4. Incorrect file format
Some ATS systems struggle with PDF files (though this has improved significantly). When in doubt, a clean PDF from a well-structured HTML builder โ or a Word .docx โ parses correctly in most modern systems.
5. Contact info in headers or footers
Many ATS platforms ignore the header and footer sections of Word documents. If your name, email, or phone number is in a header, the system may not capture it properly.
The keyword matching game
Keywords are the most impactful thing you can optimize. Here's a systematic approach:
- Copy the job description into a text document
- Highlight every skill, tool, and qualification mentioned โ especially ones repeated multiple times
- Compare to your resume โ which of these do you have but haven't mentioned?
- Add missing keywords naturally โ work them into bullet points and your skills section
- Match terminology exactly โ if the posting says "CRM software" and you wrote "customer database," update it
Aim to match at least 60โ70% of the key terms in a job description. You don't need to stuff every keyword โ ATS systems penalize obvious keyword stuffing just as Google penalizes it in web content.
Tailoring for every application
One resume submitted to 100 jobs is significantly less effective than 5 tailored resumes submitted to 20 carefully chosen jobs. The extra 15 minutes per application pays off in significantly higher response rates.
Formatting rules for ATS compatibility
โ DO
- Use a single-column layout for ATS-critical applications
- Use standard fonts (Georgia, Arial, Calibri, DM Sans)
- Use simple bullet points (โข, -, or plain asterisks)
- Include all contact info in the body of the document
- Use consistent date formatting (Jan 2020 or 01/2020)
- Save as PDF from a clean HTML or Word source
- Keep file under 1MB
โ DON'T
- Use tables or multi-column layouts for ATS roles
- Put contact info in headers or footers
- Use text boxes or shapes from Word/design tools
- Include images, charts, or infographics
- Use fancy Unicode characters as bullet points
- Submit a scanned image PDF
- Use columns for your skills section
Section headings that ATS can read
Stick to these exact or near-exact headings. The closer you are to what the ATS expects, the better it parses your content:
- Work Experience (or "Professional Experience," "Employment History")
- Education
- Skills (or "Core Competencies," "Technical Skills")
- Summary (or "Professional Summary," "Profile")
- Certifications (or "Licenses and Certifications")
- Projects
- Volunteer Experience
Section names like "My Journey," "What I Bring," "Career Highlights," or "Expertise" may confuse parsing algorithms. Save creative formatting for roles at companies you know use human-first review (creative agencies, startups).
ATS-ready resume checklist
- โ Job title in my resume matches (or closely mirrors) the job posting title
- โ Skills section includes exact keywords from the job description
- โ No tables, text boxes, or multi-column layouts
- โ Contact info is in the body of the document, not a header
- โ All section headings use standard terminology
- โ Dates are formatted consistently throughout
- โ File is saved as PDF (not a scanned image)
- โ Bullet points use standard characters
- โ Both spelled-out and abbreviated versions of certifications included (e.g., "Project Management Professional (PMP)")
Use the right template
Not every beautiful resume template is ATS-friendly. Multi-column layouts, sidebar designs, and graphics-heavy templates can cause parsing failures in older ATS systems.
Best templates for ATS submissions:
- ATS template in ResumeForge โ plain Georgia serif, single column, zero decoration. Maximum parser compatibility.
- Minimal template โ clean DM Sans, light formatting. Good for modern ATS systems that handle simple layouts.
- Compact template โ single column header, clean structure. Works well for experienced candidates with a lot of content.
For human-reviewed applications (creative roles, small companies, referral applications), the Classic, Modern, Creative, or Executive templates make a stronger visual impression.
The strategic approach: maintain two versions of your resume. A clean ATS-optimized version for online applications, and a designed version for networking, emailed applications, and interviews.
Build an ATS-optimized resume โ free
ResumeForge includes a dedicated ATS template and clean export options. No account needed.
Open ResumeForge โ