What Is an ATS and How Does It Work? (Job Seekers' Guide)

What is an ATS?

An Applicant Tracking System (ATS) is a type of recruitment software used by employers to screen resumes automatically. With job postings receiving hundreds of applications, ATS saves recruiters time by filtering out unqualified candidates.

How Does ATS Work?

The system scans resumes for keywords, formats, and structured information. If your resume doesn’t match, it gets filtered out. Here’s how it works:

  • Parses your resume into text
  • Looks for specific keywords from the job description
  • Ranks candidates based on relevance
  • Rejects resumes with unreadable formats

Why ATS Matters in 2025

Over 90% of large companies now use ATS. Even small startups adopt these systems thanks to affordable HR software. If you don’t optimize your resume, you risk being invisible to recruiters.

How to Beat ATS

To improve your chances:

  • Use simple, ATS-friendly layouts (see our templates)
  • Incorporate keywords from the job posting
  • Use standard section headings (Experience, Education, Skills)
  • Avoid images, fancy fonts, and unusual symbols

Final Advice

ATS is not the enemy — it’s a filter. By learning how it works, you can tailor your resume to get past the software and into the hands of real recruiters. With Resumly, you can create an ATS-friendly resume in minutes.