Understanding Applicant Tracking Systems (ATS): What You Need To Know

In today's digital age, the job application process has transformed significantly. What once involved mailing paper resumes directly to hiring managers is now largely automated, thanks to Applicant Tracking Systems (ATS). For job seekers, understanding how these systems work is crucial to ensuring their resumes make it into human hands.

What Is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is a software application used by companies to manage their recruitment processes. From the initial job posting to the final hire, ATS platforms help streamline various aspects of hiring, including resume collection, sorting, and filtering.

Here’s how it typically works:

1. Resume Submission: When you apply for a job online, your resume is uploaded into the ATS database.

2. Keyword Matching: The ATS scans your resume for specific keywords related to the job description. These keywords might include skills, qualifications, job titles, and more.

3. Ranking and Filtering: Based on the presence and frequency of these keywords, the ATS ranks your resume against others in the system. Resumes that match more closely with the job requirements are prioritized.

4. Human Review: Only the top-ranked resumes are forwarded to human recruiters or hiring managers for review. The rest may never be seen by a person at all.

   
   

The Impact of ATS on Job Seekers

While ATS software simplifies the recruitment process for employers, it also introduces new challenges for job seekers. It’s estimated that up to 75% of resumes submitted for a job are never seen by human eyes, largely due to the filtering mechanisms of ATS . This means that a well-qualified candidate might be overlooked simply because their resume wasn’t formatted correctly or didn’t include the right keywords.

Key Challenges of ATS for Job Seekers:

• Keyword Sensitivity: Resumes that don’t include the exact keywords from the job description may be filtered out, even if the candidate is highly qualified.

• Formatting Issues: ATS can struggle with non-standard resume formats, such as those with columns, graphics, or unusual fonts. This can lead to important information being misinterpreted or ignored.

• Volume of Applications: With the ease of online applications, companies often receive hundreds or even thousands of resumes for a single position. ATS helps manage this volume, but it also means that the competition is fierce.

The Statistics: How Many Humans Actually Review Resumes?

The rise of ATS has significantly reduced the number of resumes that reach human recruiters. Here are some eye-opening statistics:

• 75% of Resumes Are Never Seen by Humans: According to some studies, only 25% of resumes submitted through an ATS make it to a human recruiter for review .

• 98% of Fortune 500 Companies Use ATS: The vast majority of large companies rely on ATS to manage their hiring processes, making it essential for job seekers to understand how to optimize their resumes for these systems .

• 43% of Employers Plan to Increase Their Use of AI in Hiring: With the growing trend of using artificial intelligence (AI) in recruitment, the reliance on ATS and similar technologies is expected to rise, further emphasizing the importance of keyword optimization .

  
  

While Applicant Tracking Systems have revolutionized the hiring process, they have also created new hurdles for job seekers. Not only are you competing against others who are applying, job seekers are competing from a format and word choice standpoint that against AI. Networking and work refferals is a key factor in the new job marketplace and AthleteHire is here to help.