ATS are used by almost all large employers, but how?

If you’ve ever applied for a job online, chances are your application has gone through an Applicant Tracking System, or ATS. These systems are software tools used by employers to streamline their hiring processes. While they’re incredibly useful for employers, they can sometimes feel like a mysterious black box to job seekers. Let’s shed some light on what an ATS is, how it works, and what you should know as an early-career candidate.

What Is an ATS and How Is It Used?

An ATS is essentially a digital gatekeeper. Employers use these systems to manage the influx of job applications, which can number in the hundreds or even thousands for a single position. Here’s what they do:

• Sorting and Storing Applications: ATS systems organize and store resumes, cover letters, and other application materials in a centralized database.
• Screening for Keywords: Many ATS systems scan your resume for keywords that match the job description. This helps recruiters quickly identify candidates whose qualifications align with the job.
• Scoring or Ranking Candidates: Some ATS systems assign scores or rankings to applicants based on how closely they match the job requirements. Recruiters often prioritize reviewing higher-ranked applications.
• Automated Rejections: In some cases, ATS systems automatically reject applications based on “knock-out” questions. For example, if a role requires you to be legally authorized to work in a specific country and you answer “no,” your application might be disqualified without a recruiter ever seeing it.

How Prevalent Are ATS Systems?

Almost all Fortune 1,000 employers use ATS software, though not all do. These systems are particularly valuable to large organizations that receive an overwhelming volume of applications. Smaller employers might still review applications manually, but ATS adoption continues to grow across organizations of all sizes.

Based on adoption rates among Fortune 500 companies, the top five Applicant Tracking Systems (ATS) are:

• Workday: Leading the market with over 37% usage among Fortune 500 companies, Workday offers comprehensive human capital management solutions.
• SAP SuccessFactors: Used by approximately 13.4% of Fortune 500 companies, SuccessFactors provides robust talent management and recruitment features.
• Phenom People: Experiencing significant growth, Phenom People’s usage nearly doubled to 8.7% among Fortune 500 companies, offering AI-driven talent experience platforms.
• iCIMS: A longstanding player in the ATS market, iCIMS continues to be a preferred choice for talent acquisition among large enterprises.
• Oracle Taleo: Despite a decline in usage, Oracle Taleo remains a notable ATS provider among Fortune 500 companies.

Challenges and Controversies Around ATS Systems

While ATS technology helps employers work efficiently, it’s not without its downsides:

• Potential for Over-Automation: Sometimes, ATS systems might filter out qualified candidates due to overly strict keyword or scoring criteria. That’s why tailoring your resume to each job is critical.
• Legal Risks: The Mobley vs. Workday lawsuit has raised questions about how ATS systems could be held accountable for illegal hiring practices. If an ATS is programmed to make decisions in a way that leads to discrimination, the ATS provider might be considered a staffing company under U.S. law. This case is still unfolding, but it highlights the need for transparency and fairness in how these systems are designed and used.

How to Navigate the ATS as a Job Seeker

While ATS systems are powerful tools for employers, they don’t have to be an obstacle for you. Here’s how to increase your chances of getting through the system:

• Tailor Your Resume: Use keywords from the job description naturally throughout your application. Make sure your resume format is ATS-friendly. Although some ATS have no problem handling fancy graphics or columns, others do. All of them handle resumes without graphics or columns, and so the safest path is to not include those in your resume if it isn’t clear how well the ATS handles them.
• Answer Knock-Out Questions Carefully: Double-check your responses to any pre-screening questions to avoid unintentional disqualifications. Expect to be automatically rejected by the ATS if you’re applying for a job as a commercial truck driver, the ad says that candidates must have a commercial driver’s license (CDL), the ATS asks if you do, and you answer no.
• Focus on Relevance: Highlight your most relevant skills and experiences to align with the job’s key requirements. If the ad says that the role requires 2-5 years of experience in retail, make sure that your resume uses exactly the same language as used by the ad. If you repeat the ad’s requirements word-for-word, that’s going to make it easier for the ATS to match up your qualifications against those desired by the employer, which will make it more likely that the ATS will effectively recommend to a recruiter that they review your resume as your resume will more closely match the job requirements than others.

Remember: behind every ATS is a recruiter looking for the right person to fill a role. With the right approach, that person could be you!