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How Applicant Tracking Systems Work (And How to Beat Them)

75% of resumes are rejected by software before a human ever sees them. Here's how that software actually works.

fullCV.online
fullCV.online Editorial Team 26 March 2026
How Applicant Tracking Systems Work (And How to Beat Them)

What Is an ATS?

An Applicant Tracking System is software that companies use to manage job applications. Think of it as a combination of:

  • Email inbox for resumes
  • Database for candidate information
  • Filter that ranks applicants
  • Workflow tool for hiring teams

Over 98% of Fortune 500 companies and 75% of all employers use some form of ATS.

How ATS Actually Processes Your Resume

Step 1: Parsing

The ATS reads your resume file and extracts data into structured fields:

  • Name → Name field
  • Email → Contact field
  • Company names → Experience section
  • Job titles → Position field
  • Dates → Timeline
  • Skills → Skills database

Where things break:

  • Images and graphics are ignored entirely
  • Tables can scramble data into wrong fields
  • Headers and footers are often skipped
  • Custom fonts may not render correctly
  • Multi-column layouts confuse the parser

Step 2: Keyword Matching

The ATS compares your parsed resume against the job description. It looks for:

  • Hard matches: Exact keywords from the job posting
  • Related terms: Synonyms and variations
  • Required qualifications: Certifications, degrees, years of experience
  • Skills: Both technical and soft skills mentioned in the posting

Step 3: Ranking

Based on keyword matches and other criteria, the ATS assigns a relevance score. Resumes are typically ranked:

  • High match (80-100%): Forwarded to recruiter immediately
  • Medium match (50-79%): May be reviewed if the candidate pool is small
  • Low match (<50%): Effectively rejected

Step 4: Human Review

Only resumes that pass the ATS filter reach a human. And that human spends 6-7 seconds on initial review.

The Major ATS Platforms

Workday

  • Used by: Large enterprises (Amazon, Netflix, PwC)
  • Parsing: Moderate quality
  • Tip: Use standard section headings

Greenhouse

  • Used by: Tech companies (Airbnb, Pinterest, GitLab)
  • Parsing: Good quality
  • Tip: Focus on keyword density

Taleo (Oracle)

  • Used by: Fortune 500, government contractors
  • Parsing: Older system, strict formatting needs
  • Tip: Keep formatting extremely simple

Lever

  • Used by: Mid-size tech companies
  • Parsing: Good quality, modern system
  • Tip: Keywords in context matter more than keyword stuffing

iCIMS

  • Used by: Healthcare, retail, large enterprises
  • Parsing: Good quality
  • Tip: Include exact job title from the posting

How to Optimize for ATS

1. Mirror the Job Description

If the job says "project management," don't write "PM" or "managing projects." Use the exact phrase.

2. Use Standard Section Headings

ATS looks for standard headings:

  • ✅ "Work Experience" or "Professional Experience"
  • ✅ "Education"
  • ✅ "Skills"
  • ❌ "My Journey" or "What I've Done" or "Toolkit"

3. Submit as PDF (Usually)

PDF preserves formatting and parses well on modern ATS systems. Some older systems prefer .docx — check the application instructions.

4. Use a Single-Column Layout

Multi-column designs confuse parsers. Stick to a clean, single-column format.

5. Include Both Acronyms and Full Terms

"Search Engine Optimization (SEO)" covers both keyword variations.

6. Don't Use Images for Text

ATS can't read text inside images. Your name, contact info, and section headings must be real text.

7. Avoid Fancy Formatting

  • No text boxes
  • No embedded charts or graphics
  • No custom icons
  • Minimal use of bold and italic (some ATS strips formatting)

ATS Myths Debunked

Myth: "ATS rejects resumes with color"

False. Modern ATS systems ignore color — they only read text content. Color affects human readers, not ATS.

Myth: "You need to stuff keywords"

False. Keyword stuffing (especially hidden white text) can get you flagged and rejected. Use keywords naturally in context.

Myth: "ATS can't read PDFs"

Mostly false. Modern ATS handles PDF well. Only very old systems struggle — and those are increasingly rare.

Myth: "Creative resumes are always rejected"

Partially true. The design elements are ignored, but if the underlying text is well-structured, the content still parses.

Test Your Resume's ATS Readiness

fullCV.online includes a built-in ATS scoring tool that analyzes your resume against job descriptions. It identifies:

  • Missing keywords
  • Formatting issues that could cause parsing problems
  • Section structure recommendations
  • Overall ATS compatibility score

All fullCV.online templates are designed to be ATS-friendly from the ground up — clean parsing, standard structure, and optimized formatting.

Check your resume's ATS score →

ATS system explained
applicant tracking system
how ATS works
ATS resume tips
resume screening software
fullCV.online

fullCV.online Editorial Team

Written by career professionals, resume experts, and hiring insiders. Every article is researched, fact-checked, and crafted to deliver actionable insights that move your career forward.

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