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ATS Explained: A Recruiter’s Guide to Applicant Tracking Systems (2025 Guide)

There’s so much noise about applicant tracking systems (ATS) out there. Scroll through LinkedIn, and you’ll see posts ranging from “ATS doesn’t reject you, I do” to “ATS rejects 75% of resumes.” Some resume writers insist that ATS-friendly resumes are a myth, while others claim they’re a must-have for job seekers. And just to add to the confusion, you’ll find a Head of Talent Acquisition sharing three tips to make your resume “ATS- and recruiter-friendly,” only to agree 20 minutes later with a post claiming “there’s no such thing as an ATS-friendly resume.” (True story.)


It’s confusing, right? If you’re a job seeker trying to figure out what to believe, I see you. Even as someone who’s worked as a recruiter using multiple applicant tracking systems, I’ve found myself wondering, “Wait, which one is true?”


No wonder it’s so hard to know what advice to trust—or how to make your resume work for you.


Instead of just adding to the confusion, I want to clear it up. So, I’ll explain why there’s so much noise about ATS in the first place, break down what ATS really is (and isn’t), and show you how to tell if your resume is ATS-friendly with practical, proven tips you can use right now.



Screenshot of a candidate profile preview displayed in an applicant tracking system (ATS), showcasing key details like name, job title, and qualifications, with the title 'What You Must Know About Applicant Tracking Systems (ATS).


Table of Contents:



 

What is an Applicant Tracking System (ATS), and How Do Recruiters Use It?


An applicant tracking system (ATS) is a software tool that helps companies collect, organize, and manage all job applications in one place. Think of it as a smarter, digital version of an old-school filing cabinet.


Now, imagine being a recruiter faced with thousands of resumes for multiple job openings. Overwhelming, right?


That’s where an ATS steps in. It automatically organizes resumes, streamlining the process for recruiters to search, filter, and communicate with candidates—no lost job applications, no endless inbox scrolling, and no tedious manual sorting.



Popular Applicant Tracking Systems


According to JobScan, 98.4% of Fortune 500 companies use ATS.


Ever applied for a job online? Chances are, your resume went through one of these applicant tracking systems: Workday, Taleo, Greenhouse, SAP Success Factors, iCIMS, or BambooHR.


For example, in Greenhouse, your job application would look like this:

Candidate profile view in Greenhouse applicant tracking system (ATS), displaying key details like name, application status, and contact information.

Candidate profile preview in Greenhouse (ATS). Image source: Greenhouse.



(Hint: The field on the right shows all the details either auto-filled or manually entered by you during the online job application process.)


In Workday, it would look like this:


Candidate profile view in Workday applicant tracking system (ATS), displaying key details like name, application status, and contact information.

Candidate profile overview in Workday (ATS). Image source: Workday.



And this is what it would look like in iCIMS:


Candidate profile in iCIMS applicant tracking system (ATS), showcasing information such as name, resume summary, and application status.

Candidate profile preview in iCIMS (ATS). Image source: iCIMS.



As you can notice, all applicant tracking systems have slightly different features, but the goal is the same: making the hiring process faster and more manageable.



How Recruiters Use ATS (Personal Experience)


As a recruiter, I’ve used multiple ATS, including Taleo (by Oracle), Workday, and SAP Success Factors Recruiting.


(Fun fact: I didn’t just use SAP SuccessFactors. I actually implemented it at a company I worked for, customizing it to meet local needs so it looked like the ATS below.)


Job applications listed in SAP SuccessFactors, showing candidate details like names, job titles, application statuses, and submission dates.

Application overview in SAP SuccessFactors Recruiting (ATS). Image source: SAP.



Here’s an important thing to know: the ATS isn’t some all-powerful gatekeeper making hiring decisions. That’s always been me and the hiring managers I worked with, the humans behind the process. The ATS? It’s more like a hyper-organized assistant, great for managing admin tasks, not for deciding who gets the job on its own agenda.

So, how does an ATS actually help recruiters? Here’s what it’s designed to do:

  1. Receiving applications: When candidates upload their resumes, the ATS stores them in a database. So, when 500 resumes flood in for one job, the ATS keeps everything organized and ensures no one’s application gets lost.

  2. Parsing resumes: Parsing means the ATS reads a resume and breaks it into organized sections, like name, contact info, work experience, and skills. This makes it easier for recruiters to scan and sort through applications.

  3. Filtering resumes: Sometimes, instead of opening a new job vacancy, I’d filter candidates already in the ATS database using keywords related to the role. For example, searching “Google Analytics” or “content strategy” could instantly surface past applicants with relevant skills. It’s a fast way to revisit past job applications.

  4. Tracking candidate progress: The ATS keeps tabs on every stage of the hiring process, from initial applications to interviews and offers, ensuring nothing falls through the cracks.

  5. Communicating at scale: Applicant tracking systems also make it easy to send bulk emails. If I needed to invite 50 candidates to interviews, I could draft one message, send it to all of them at once, and save hours. It also helps avoid mistakes that can happen with manual emails.


The bottom line? An ATS is primarily about managing volume, not making decisions. So, when you apply for a job, the goal isn’t to “beat” the system. It’s to create a resume that works seamlessly for both recruiters and the tools they rely on. (More on that in the ATS-friendly resumes section.)


Now that you understand how ATS works and how recruiters use it, let’s address the big question: why is there so much conflicting advice about these systems?


 

3 Reasons Why There’s So Much Confusion About ATS


If ATS is just a tool that manages job applications, why does it feel so complicated? The truth is, most of the confusion comes from how it’s used and who’s talking about it. Let’s break it down.


Collage of Google search results with conflicting information and myths about how applicant tracking systems (ATS) work, set against a brown background, highlighting common misconceptions.

Reason #1: Recruiters and Companies Use ATS Differently


Not all ATS systems work the same. Even when they do, recruiters and companies can use them differently based on their specific needs. With over 800 ATS listed on Capterra and nearly 1 million recruiters on LinkedIn, it’s no surprise opinions and personal experiences differ.


For example:


  • At Company A: The ATS might be set up with "killer" or "knock-out" questions—yes/no or multiple-choice filters designed to reject candidates who don’t meet specific, non-negotiable criteria. If you’ve ever been rejected immediately after applying, this might sound familiar. While it feels like the ATS or bots rejected you, it’s important to remember: humans set those filters for a specific reason.


  • At Company B: The ATS might be used purely as an organizational tool. Resumes are stored in the system, and recruiters manually review every application. No automated rejections, just better organization for managing candidates.


The takeaway?


With so many ATS tools and recruiters using them differently, conflicting advice is inevitable. One recruiter might say, “ATS doesn’t reject anyone,” while another depends on filters that do just that. And neither side is necessarily right or wrong. They’re just coming at it from perspectives that couldn’t be more different. These differences explain why job seekers often get conflicting information and feel lost about how ATS really works.



Reason #2: Outdated or Incomplete Information


Some ATS advice is just plain outdated. Yet, plenty of people who don't have hands-on experience with modern ATS share tips that haven’t caught up with how much these tools have evolved over the years.


Back in the 1970s), early ATS systems could only store resumes and run simple keyword searches. If your resume used columns, tables, or PDFs, it might as well have been written in hieroglyphics. These systems couldn’t process them.


Fast forward to today, and ATS tools have evolved. Modern systems are far more advanced, just like phones have gone from clunky bricks (when the most exciting thing you could do with it was play Snake) to pocket-sized computers. Yet outdated myths persist, like:


  • “ATS can’t read two-column resumes.”

  • “Using bold or italics will get your resume rejected.”

  • “Always submit Word documents because ATS can’t handle PDFs.”


It’s like someone telling you your iPhone won’t work unless it’s plugged into a wall.


Sure, keeping your resume clean and professional is always a good idea. But modern ATS systems are designed to handle much more than they’re given credit for. So, don’t waste time overhauling your resume based on advice stuck in the early 2000s. 



Scare Tactics to Sell Products and Services


Some confusion around ATS isn’t accidental. In fact, it’s created and amplified by people and companies looking to profit from it.


Here’s how it works: they take the uncertainty job seekers already feel and dial it up a notch, turning ATS into a scary, mysterious villain you need their help to defeat. For example:


  • Companies selling tools that generate “ATS scores.” They promise to tell you how likely your resume is to pass. These scores often rely on generic metrics that don’t reflect how ATS are actually configured at different companies.

  • Resume writing services that promise “guaranteed 100% ATS compatibility” as if such a guarantee were possible. Every ATS is configured differently, so no one can guarantee universal compatibility.


Remember: Modern ATS aren’t rejecting people left and right because they don’t like your colors, fonts, or layout. They’re simply tools recruiters use to manage applications.


While it is important to make your resume easy to read for both humans and applicant tracking systems, you don’t need to fall for fear-based marketing and spend money just to have a shot.


Hopefully, this clears up some of the confusion. Now, the big question: what exactly makes a resume “ATS-friendly”? And does that even exist?


 


What Is an ATS-Friendly Resume?


The way I see it, the phrase "ATS-friendly" is just a simple way to describe a resume that works well with most applicant tracking systems.


In practical terms, it’s a resume that:


  • Can be parsed by the most common ATS.

  • Avoids complex graphic elements that might interfere with its content.

  • Looks like a professional, content-focused document, not an image.

  • Includes relevant keywords that align with the job description.

  • Is saved in ATS-compatible formats like Word (.docx) or PDF.


It’s a lot to pack into two words, which is why I use “ATS-friendly” as shorthand. When you see an "ATS-friendly resume template" on my site, it means the resume is designed to work seamlessly with the majority of applicant tracking systems.


Resume template on a brown background with two contrasting Google search results: one correctly stating that ATS does not reject resumes and another incorrectly claiming that ATS bots reject them, illustrating misinformation about applicant tracking systems (ATS).

Do ATS-Friendly Resumes Exist, or Are They a Myth?


There’s debate about whether ATS-friendly resumes are real or just a myth. So, which is it? The truth is, both sides are right, depending on how you look at it.


  • On one side, “ATS-friendly” is a real concept. Resumes designed with clean formatting, simpler layouts, and packed with strategic keywords are more likely to work with most ATS. These best practices make them compatible with the majority of systems, which is why the term exists.


  • But here’s the catch: no resume is universally ATS-friendly. Some systems are outdated and can’t handle advanced formatting. Others are configured differently by each company, meaning the same resume might parse perfectly in one system but fail in another. That’s where the term falls short—it’s not a one-size-fits-all solution.


Think of it like a battery and a remote control. A battery isn’t automatically “remote-friendly.” It only works if the battery and remote are designed to fit together. It’s the same with resumes and ATS: compatibility depends on how they interact.


So, ATS-friendly resumes do exist as a best practice and guideline. But it’s not a universal guarantee. And that’s why opinions on it vary.



The Limits of the Term "ATS-Friendly"


As you can see, the term “ATS-friendly” is helpful, but it’s not perfect. It simplifies a complex concept, and that’s where the limits come in.

For example:


  • Some ATS are outdated and struggle with certain layouts or file types. Even a perfectly formatted resume might not parse correctly if the system is old or poorly configured.

  • Other applicant tracking systems are more advanced and can handle things like columns, tables, or PDFs without any issues.

  • Plus, you've already learned that companies configure their ATS differently. One company might prioritize scanning for skills and certifications, while another focuses on job titles or specific sections. These customizations mean what works well for one ATS might not work as intended for another.

So what can you do with this information? What you can control is ensuring your resume is simple, clean, and straightforward. When it’s easy for most ATS and recruiters to read, you’ve done exactly what you need to do.


Okay, now that you know what to pay attention to, let’s make sure your resume checks all the right boxes—without paying for fancy tools.


 

How to Check if Your Resume Is ATS-Friendly: 2 Simple and Free Methods


You’ve probably seen ads for ATS scanning tools that promise to “boost your ATS score” if you subscribe. The truth? You don’t actually need them. You can test your resume’s compatibility with applicant tracking systems (ATS) for free using tools you already have.


Here are two simple methods to check if your resume is ATS-friendly:


Method #1: Convert Your Resume to a .txt File


This is the easiest, quickest, and most accurate way to test if an ATS can read your resume.


How to do it:

  1. For Word users: Open your resume and go to File > Save As > Plain Text (.txt).

  2. For Google Docs users: Open your resume, go to File > Download > Plain Text (.txt).

  3. For Pages users: Open your resume, go to File > Export To > Plain Text (.txt).

  4. If your resume is already saved as a PDF: Open the PDF, copy all the text, and paste it into a plain text editor like Notepad or TextEdit.


What to look for:


  • Can you read all the text clearly, even if the formatting looks messy? If yes, your resume will be compatible with most ATS out there. (Because a machine can read the content on it.)

  • Are there missing sections, strange symbols, or garbled text? If so, ATS may not be able to read it. To fix this, adjust the formatting: move important details out of headers or footers, and ensure all text is actual text—not part of an image or graphic. This will make it easier for ATS to process your resume.



Method #2: Upload Your Resume to a Job Application


This is another quick and free way to check if your resume is ATS-friendly. By uploading your resume to any job application portal, you can see how a real ATS interacts with your resume.


How to do it:


  1. Find a job application portal (for a role you’re interested in or just as a test).

  2. Upload your resume during the application process.


What to look for:


  • Fields populate correctly in an online job application? If your name, contact info, work experience, and job titles appear in the right places, your resume is ATS-compatible.

  • Fields missing or wrong? This might mean your resume isn’t ATS-friendly or the ATS is outdated or configured in a specific way.


How to Troubleshoot Issues With Your Resume


If something doesn’t look right, here’s how to figure out what’s causing the problem:


  1. Check the file format: Make sure your resume is in a compatible format like PDF or .docx—not an image file (.jpg, .png).

  2. Use Method #1 (the .txt test): If your text looks clean in a plain text file, your resume is fine. The issue is likely with the ATS itself. It's either outdated or configured differently.

  3. Adjust formatting: If your text isn’t readable in the .txt file, simplify your formatting. Remove columns, tables, or decorative elements until everything shows up clearly.


If all else fails, keep in mind that some ATS require candidates to manually fill in fields regardless of resume formatting. It’s not your resume—it’s just how their system works.


Finally, even with all this information and testing methods, you might still have a few questions about ATS and ATS-friendly resumes. So, let’s address the most common ones.


 

FAQs About ATS and ATS-friendly Resumes


Navigating ATS can feel like a mystery, but it doesn’t have to be. Here are straight answers to common questions so you can create a resume that works for both recruiters and their tools.


Does ATS automatically reject candidates before recruiters see their job applications?


No, ATS doesn’t make hiring decisions on its own. It’s a tool recruiters use to manage large volumes of applications. However, some ATS are programmed to screen out applications based on specific criteria set by the hiring team.

For example, if a role requires a specific certification or work permit, the ATS might use “knockout questions” to filter out candidates who don’t meet these requirements. But even in these cases, it’s not the ATS deciding. It’s the recruiters and hiring managers who configure it this way.

That said, most companies don’t rely solely on ATS for auto-rejections. From my experience, recruiters typically review applications manually, even if knockout questions are used. Exceptions might occur when application volumes are overwhelming or criteria are extremely strict, but decisions are almost always guided by human judgment.



Are all single-column resumes ATS-friendly?


Single-column resumes are often safer, but not all are automatically ATS-friendly. For example, even one-column resumes submitted in incompatible formats or as images (.jpg or .png) can be problematic. To figure out if your single-column resume is ATS-friendly, follow these steps.



Can two-column resumes be ATS-friendly?


Yes! As long as your resume is saved in the right format (like Word or PDF) and passes the .txt test, it can be ATS-compatible. The content might appear scrambled when parsed, but that’s fine as long as everything is readable. The critical part is ensuring key details—like your name, contact info, and job titles—aren’t buried in graphics or hard-to-read sections. To find out if your two-column resume is ATS-compatible, try these two methods, for free.


Here's a helpful framework to decide if you want to go with a single or two-column resume: two-column resumes are likely to pass in about 95% of ATS, while single-column resumes edge closer to 99.9%. (Just don’t quote me on it. It’s an estimate meant to give you perspective, not an exact stat or hard rule.)



My resume doesn’t populate fields correctly in online applications. How can I fix this?


If fields like your name or job title don’t fill in automatically when uploading your resume, here’s what could be happening:


  1. Your resume might be saved in the wrong format (use Word or PDF).

  2. It may include complex elements like graphics, tables, or headers that ATS struggle with.

  3. The ATS itself might be outdated or configured in a specific way.


To troubleshoot:


  • Use the .txt test (Method #1) to confirm if your resume’s text is readable.

  • Simplify your formatting by removing unnecessary design elements.

  • Double-check that your file format matches the job posting requirements.


If all else fails, the issue could lie with the ATS, not your resume. Try submitting your resume to another job application portal. If the fields populate correctly there, the problem is on their end, not yours.



I used an ATS-friendly template, but it didn’t fill out the fields in an online job application. Is it really ATS-friendly?


If an ATS-friendly template didn’t populate fields correctly, it doesn’t necessarily mean your resume isn’t compatible. The problem might be with the ATS itself. For example, outdated systems or unique configurations can cause parsing issues even with the best resumes. Follow the steps above to test if your resume is causing the issue.



My resume has a low ATS score. What should I do?


Unless that ATS score is provided by the exact company you’re applying to, I wouldn’t worry about it. (And no company I know actually gives these scores, so again, nothing to stress about.)


Low ATS scores from third-party tools are often misleading. These tools use generic algorithms that don’t reflect how actual ATS systems evaluate resumes. They also tend to push subscriptions or services with promises of higher “ATS scores.”


Here’s the truth: there’s no universal standard for ATS compatibility, so these scores don’t mean much. If you’re tailoring your resume to the job description, using relevant keywords, and saving it in a standard format (Word or PDF), you’re doing exactly what you need to.


Use these tools only as general guidance on the keywords you should use, not as a design input or definitive measure of success. At the end of the day, a tailored, clear, and relevant resume will always outperform chasing arbitrary scores.


 

Final Thoughts: Cutting Through the ATS Noise


If you’ve noticed phrases like “most ATS” or “most recruiters” throughout this post, that’s intentional. I choose my words carefully because giving absolute advice about something as nuanced and variable as ATS wouldn’t be helpful or fair to you.

Why? Because even if there’s a 0.0001% chance that one recruiter uses an applicant tracking system differently than I did, my experience isn’t universal. Pretending otherwise only adds to the noise and conflicting advice that leaves job seekers feeling confused.

The truth is, every side of the ATS debate has a point. ATS systems aren’t one-size-fits-all. How they’re used depends entirely on the company, the recruiter, and how the system is configured.

One recruiter’s experience might look completely different from another’s, and that’s okay. The confusion happens when personal, anecdotal experiences are treated as absolute truths, ignoring the bigger picture.

But ultimately, it’s not about deciding who’s “right” or “wrong.” It’s about understanding the context behind how these tools work and why those differences exist. When you approach ATS with that context in mind, navigating them becomes much clearer.


So, where does that leave you as a job seeker?



A Practical Approach to ATS and ATS-Friendly Resumes for Job Seekers


Here’s the good news: you don’t need to master every detail about ATS or overthink your resume to create one that works and apply for jobs with confidence.


Focus on what you can control:

  • Keep it simple: Use a clean format, save your resume as a Word document or PDF, and avoid graphics or overly complex designs.

  • Tailor your content: Incorporate keywords from the job description throughout your resume.

  • Test it: Use the .txt method to make sure all your content is readable by ATS systems.


By prioritizing clarity and relevance, you’ll set yourself up for success, no matter which ATS your resume encounters. Instead of stressing over the noise, take small, practical steps to create a resume that works for recruiters and their tools.


 

TL;DR: Key Things You Must Know About Applicant Tracking Systems (ATS)


  • ATS systems aren’t all the same. How an ATS works depends on the company and recruiter using it. One person’s experience with ATS can look completely different from another’s, which is why there’s so much conflicting advice. The key to navigating ATS is understanding these nuances.

  • "ATS-friendly" is a helpful guideline, not a guarantee. Resumes with clean formatting, relevant keywords, and compatible file types will work for most ATS—but not all. Compatibility depends on the specific system, so think of "ATS-friendly" as a best practice, not a hard-and-fast rule.

  • You don’t need fancy tools to check if your resume works. Forget pricey tools or subscriptions. Simple, free methods like the .txt test or uploading your resume to a job application portal can confirm if it’s ATS-friendly. Focus on clarity, relevance, and ease of reading instead of chasing arbitrary scores.

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