Crafting the perfect resume takes a lot of time and effort. You focus on showcasing your skills and experiences to make the strongest impression possible. However, even with a well-polished resume, you might not be landing the interviews you deserve. Why is this happening?
Often, the issue lies not with your resume itself, but with the system it encounters after you submit it. Many companies use applicant tracking systems (ATS) to screen resumes before they ever reach human eyes. This means that your resume could be filtered out by a computer system rather than reviewed by a recruiter.
An applicant tracking system is specialized software designed to scan resumes for specific keywords related to the job description. If your resume doesn’t match these keywords, it might not even make it to the hiring manager. To ensure that your resume passes through the ATS and reaches a real person, you need to optimize it accordingly.
In this article, we’ll delve into eight crucial aspects of ATS, including what they are, how they function, and strategies to effectively navigate them.
What is an ATS?
Applicant tracking systems are used by many companies to streamline the hiring process. They help manage the large volume of applications by sorting and organizing resumes. The ATS collects resumes, tracks candidates’ progress, and helps hiring managers by filtering through thousands of applications. This process makes hiring more efficient and cost-effective for employers.
How Applicant Tracking Systems Work
An ATS operates through four main steps:
- Job Requisition: The system receives a job requisition containing details like job title, required skills, and experience.
- Candidate Profile Creation: The ATS creates a profile for the ideal candidate based on this requisition.
- Resume Parsing and Ranking: As resumes are submitted, the ATS parses them to extract relevant information and ranks them according to how well they match the profile.
- Candidate Selection: Hiring managers use the ATS to identify the most suitable candidates for further consideration.
Recruiters often search for specific keywords, job titles, and skills. For example, if a job posting is for an “Administrative Assistant,” the ATS will filter resumes that include this exact term. To improve your chances of getting noticed, include relevant keywords from the job description in your resume. Tools like Hireonboard can analyze your resume against job descriptions and provide feedback on how to enhance your keyword usage and overall score.
ATS vs. CRM
Recruiting software comes in two main types:
- Applicant Tracking Systems (ATS): Used during the hiring process to manage applications from candidates who have already applied. ATS software includes features such as resume parsing, candidate screening, and assessment tools.
- Candidate Relationship Management (CRM) Systems: Used for proactively engaging potential candidates who have not yet applied. CRM features often include email marketing, scheduling, and communication tools.
Many companies use both ATS and CRM systems to maximize their recruiting efforts. While ATS manage incoming applications, CRM systems help build relationships with potential candidates and gather information that ATS alone might not capture.
Key Features of Applicant Tracking Systems
ATS software is designed to handle high volumes of applications efficiently. Key features include:
- Resume Parsing: Extracts essential information such as contact details, work history, and skills from resumes.
- Advanced Search: Allows recruiters to filter resumes based on specific keywords, job titles, and other criteria.
- Candidate Sourcing: Enables proactive searching and outreach to potential candidates through various channels.
- Multi-Channel Sourcing: Facilitates candidate searches across job boards, social media, and employee referrals.
- Integrated CRM: Some ATS include CRM capabilities to manage all recruiting functions in one platform.
- Email Templates: Provides standardized templates for consistent and professional communication with candidates.
- Advanced Analytics and Reporting: Offers detailed insights into hiring trends and application data.
- Integration: Connects with other software such as email marketing tools, accounting systems, and CRM platforms.
- Interview Scheduling: Automates the scheduling and management of interviews.
- Real-Time Collaboration: Allows team members to collaborate on candidate evaluation and decision-making.
- Automation: Triggers actions based on specific conditions, enhancing efficiency.
Accuracy of ATS
While ATS systems offer many benefits, they are not perfect. Research from Harvard Business Review indicated that 88% of recruiters believed qualified candidates were overlooked by ATS due to rigid keyword matching. This means many talented individuals may be rejected because their resumes don’t include the exact terms used in the job description. To counter this, ensure your resume includes the precise keywords that match the job listing. Just having the correct job title can make you 3.5 times more likely to secure an interview.
Who Uses ATS?
Data shows that over 97% of Fortune 500 companies use ATS, and a significant percentage of both large and small organizations are adopting these systems. If you’re applying to a large company or through an online application process, your resume is likely processed by an ATS.
Why Employers Use ATS
The internet has simplified the application process, leading to an influx of resumes for each job posting. This results in a need for ATS to handle the large volume of applications efficiently. ATS helps employers:
- Improve communication among hiring managers.
- Speed up the applicant screening process.
- Reduce repetitive tasks.
- Enhance candidate engagement.
- Offer better oversight of applications.
- Simplify job postings and reduce hiring costs.
The efficiencies brought by ATS have made them a vital component of modern recruitment.
The Future of ATS
Artificial intelligence (AI) is rapidly transforming recruitment, with AI-powered ATS already performing tasks like resume screening, identifying potential candidates, and even conducting initial interviews. Future developments may see greater integration with social media platforms like LinkedIn, enabling the identification of both active and passive candidates. AI could also lead to the use of chatbots for answering candidate queries and providing application process information, making the recruitment process even more streamlined and effective.
Optimizing Your Resume for ATS
To ensure your resume successfully navigates an ATS, follow these tips:
- Tailor Your Resume: Customize your resume for each job application by reflecting the specific job description.
- Use Relevant Keywords: Match your resume keywords to those in the job description to improve ATS ranking.
- Include Both Long-Form and Acronyms: Use both the full form and abbreviations of terms (e.g., “Master of Business Administration (MBA)”).
- Choose an Appropriate Format: Stick to chronological or hybrid formats and avoid functional resumes.
- Use Standard Fonts and Layouts: Choose traditional fonts like Arial or Times New Roman, and avoid complex designs.
- Avoid Headers and Footers: Information in headers or footers might not be read correctly by ATS.
- Use Standard Section Headings: Employ conventional headings like “Work Experience” rather than creative alternatives.
- Utilize ATS-Friendly Tools: Use resume builders that are optimized for ATS compatibility, such as Hireonboard’s resume scanner.
Hireonboard’s resume scanner offers an easy way to optimize your resume, providing insights into how to enhance your resume’s alignment with job descriptions. The Power Edit feature offers AI-powered editing and ATS-friendly templates to improve your chances of passing through an ATS.
FAQs
- What file types do ATS recognize? Most ATS accept Word documents and some PDFs.
- How can you test a resume for ATS compatibility? Use a resume scanner to evaluate and improve your resume’s ATS compatibility.
- Do small companies use ATS? Adoption by small companies is growing, with around 35% using ATS.
- Are there specific keywords or formatting guidelines? Yes, use relevant keywords from the job description and a simple, standard format.
- Can ATS reject applications without human review? ATS filter resumes based on preset criteria, but final decisions are made by humans.
- How can you tailor your resume? Mirror the job description’s language and include relevant keywords in your resume summary and experience sections.
- Disadvantages for job seekers: Resumes with incorrect keywords or complex formatting may be overlooked, despite possessing the right skills and experience.
- What does ATS stand for? ATS stands for Applicant Tracking System, which helps manage job applications and streamline the hiring process.
- ATS in HR: ATS helps HR departments organize and manage large volumes of job applications efficiently.
