More than 90% of medium to large employers are using Applicant Tracking Systems (ATS) to filter resumes before they ever reach a human recruiter. If your resume isn’t optimized for ATS, it could be automatically rejected, no matter how qualified you are. This guide will show you exactly how ATS works, what recruiters expect, and how to build an ATS-friendly resume that gets you interviews.

What Is an Applicant Tracking System (ATS)?

An ATS is a software used by employers to collect, scan, and rank job applications. It scans resumes for keywords, formats, and relevance to the job posting. The ATS then ranks candidates based on how well their resume matches the job description. If your resume isn’t ATS-compliant, it may never be seen by a recruiter.

How ATS Works

Modern ATS systems go beyond keyword scanning. They now use natural language processing (NLP) and AI to understand context. Here’s how they process resumes:
1. Parse the resume into data fields (Name, Contact, Experience, Skills).
2. Match keywords against the job description.
3. Score candidates based on relevance, recency of experience, and skills.
4. Rank applicants and forward only the top matches to recruiters.

Step 1: Use an ATS-Friendly Format

❌ Avoid: Complex designs, graphics, tables, headers, footers, text boxes.
✅ Use: Standard Word or PDF format with clear section headings.

Correct example:
EXPERIENCE
Project Manager, ABC Corp, 2020–2023
– Led a team of 12 to deliver projects 20% faster.

Incorrect example:
[Fancy text box with colored fonts, images, and icons that ATS cannot parse.]

Step 2: Use the Right Keywords

ATS systems are programmed to scan for job-specific keywords. To optimize:
✅ Mirror language from the job description.
✅ Include both acronyms and full forms (e.g., SEO & Search Engine Optimization).
✅ Integrate keywords naturally into bullet points.

Example: If the job posting requires ‘project management’ and ‘Agile,’ your resume might say:
– Led Agile project management initiatives, increasing delivery speed by 30%.

Step 3: Optimize Work Experience

Recruiters and ATS both value measurable results. Use this framework:
Action Verb + Task + Result + Metric.

Example:
• Implemented a new CRM system, reducing lead response time by 40%.
• Managed a $2M project portfolio, delivering 95% on time and under budget.

Step 4: Build a Targeted Skills Section

ATS extracts hard skills from resumes. Create a dedicated ‘Skills’ section with:
• Technical skills: Python, SQL, Salesforce
• Industry tools: Jira, Tableau, Epic Systems
• Certifications: PMP, AWS Certified Solutions Architect

Avoid listing soft skills here; integrate those into your summary and experience.

Step 5: Avoid ATS Mistakes

❌ Don’t use images, graphics, or logos.
❌ Don’t hide critical information in headers or footers.
❌ Don’t use unusual fonts like Comic Sans or script fonts.
❌ Don’t keyword stuff (repeating the same word excessively).

ATS Resume Example vs Non-ATS Resume

ATS-Optimized Example:
Software Engineer | ABC Tech | 2021–Present
– Developed Python automation scripts, reducing manual workload by 35%.
– Collaborated using Agile Scrum, delivering 10+ sprints on schedule.

Non-ATS Resume Example:
[Colorful design with icons, timeline graphics, and no keywords from the job description.]

Step 6: Test Your Resume

Before submitting, test your resume with ATS-friendly tools such as Loopendo’s built-in ATS resume checker. These tools compare your resume against the job posting and provide a match score so you can improve before applying.

FAQs About ATS Resumes

Q: Do all companies use ATS?
A: Most medium to large companies do. Smaller businesses may still review manually.

Q: Should I use a template?
A: Only if it’s ATS-compliant. Avoid overly designed templates.

Q: Can I use color?
A: Minimal use is fine, but keep it simple (black text preferred).

Q: Should I include a photo?
A: No. Photos often cause ATS parsing issues and may introduce bias.

Final Thoughts

An ATS resume isn’t about eliminating creativity—it’s about ensuring your qualifications reach recruiters. By following these steps, you’ll create a resume that both passes ATS filters and impresses human readers.

Want to be sure your resume is ATS-ready? Sign up with Loopendo today and let our experts craft a job-winning resume tailored to your goals.