Applicant Tracking System

Why Your Applicant Tracking System (ATS) Might Be Rejecting Top Talent

Did you know that applicant tracking systems (ATS) are used by 98.4% of Fortune 500 companies to screen your resume before it ever reaches human eyes? This digital gatekeeper might be the reason why your perfectly qualified application never received a response.

What is an applicant tracking system exactly? It’s software that helps companies streamline their recruitment process by collecting resumes, ranking candidates based on keywords, filtering out applications that don’t match job requirements, and tracking candidates through the hiring process. Unfortunately, these systems often have significant limitations. Over 99.7% of recruiters use keyword filters to search for candidates inside their ATS, with 76.4% filtering by skills and 55.3% by job titles.

While an effective ATS can transform hiring teams into proactive, cost-efficient operations—with data showing a 48% time saved by HR professionals on hiring activities—these same systems may inadvertently reject qualified candidates. Throughout this article, we’ll explore why top talent gets filtered out, how resume formatting affects ATS parsing, and what steps you can take to ensure your resume makes it past the digital screening stage.

What is an Applicant Tracking System and How It Works

An Applicant Tracking System (ATS) functions as the central nervous system of modern recruitment. This specialized software automates the entire hiring process, from posting job openings to sorting applications. 

According to industry data, about 99% of Fortune 500 companies and 70% of large companies rely on ATS to streamline their hiring processes. For smaller businesses, adoption sits around 20%, indicating that organizations of all sizes are embracing this technology.

Resume parsing and keyword indexing

At the core of any ATS lies its ability for resume parsing—the process of automatically extracting, analyzing, and categorizing information from submitted applications. Modern parsing tools convert resumes into structured data with remarkable 95% accuracy, significantly outperforming manual methods in both speed and consistency.

When candidates submit their applications, the ATS immediately scans them and divides the text into different sections. The system extracts essential information including:

• Contact details and personal information
• Work experience and job titles
• Educational background and qualifications
• Skills, certifications, and competencies
• Keywords relevant to the position

The parsing mechanism operates primarily through keyword identification. The software scans for specific terms related to the job requirements that employers have programmed into the system. For instance, if a position requires proficiency in “data entry” or “project management,” the ATS will flag resumes containing these terms. This indexing process creates a searchable database that recruiters can quickly filter based on specific criteria.

Additionally, many systems employ multiple parsing methods simultaneously:

• Keyword-based parsing: Identifies specific words or phrases matching job requirements
• Grammar-based parsing: Analyzes the grammatical structure of text
• Statistical parsing: Uses algorithms based on statistical models to interpret resume data

Candidate ranking algorithms in ATS

Once resumes are parsed, the ATS applies ranking algorithms to evaluate and sort candidates. These sophisticated algorithms check resumes for matching keywords, skills, and other job requirements. Applicants whose qualifications closely align with the position receive higher rankings, ensuring recruiters see the most promising candidates first.

The filtering power of these algorithms is substantial—in technical fields, only about 3% of applicants typically pass the initial ATS screening. This demonstrates why understanding ATS mechanics is crucial for job seekers.

Modern systems employ various screening methods:

• Scoring systems that assign points for matching qualifications
• Natural Language Processing (NLP) to understand the context of keywords
• Machine learning that improves hiring outcomes by learning from past successful placements

Some advanced systems use Boolean search combining terms with operators like AND or OR for more precise results. Furthermore, AI-powered ATS constantly updates rankings as new applications arrive or job requirements change, ensuring the candidate pool remains dynamically optimized, even when you are doing passive candidate sourcing.

Integration with job boards and career sites

A powerful ATS doesn’t operate in isolation—integration with external platforms substantially enhances its capabilities. Modern systems connect directly with popular job boards like Indeed, Monster, Glassdoor, and LinkedIn Jobs. This integration enables recruiters to post openings across multiple platforms simultaneously without duplicate data entry.

For example, when a job posting is created within the ATS, it can be automatically published across different job boards without having to manually post to each one individually. This significantly expands the reach of job listings and increases the likelihood of finding qualified candidates.

Furthermore, ATS-job board integration creates a real-time flow of information. When candidates apply through external platforms, their information is automatically imported into the ATS database. The system alerts recruiters when new applications arrive, even outside working hours—essentially gathering resumes continuously.

Career site integration similarly streamlines the application process. By connecting the company website with the ATS, applications submitted through the organization’s careers page flow directly into the candidate database. Some systems also offer website widgets that capture applicant data without requiring complete website recoding.

Through these integrations, the ATS serves as a centralized hub for all recruitment activities, significantly reducing manual effort while maximizing candidate reach.

Why Qualified Candidates Get Filtered Out

Even the most qualified candidates frequently find themselves eliminated from consideration before a human ever reviews their application. This filtering happens primarily due to how applicant tracking systems (ATS) process and evaluate resumes. In fact, studies reveal that 75% of resumes are rejected by ATS simply because they aren’t properly formatted. Let’s examine the three main reasons why talented professionals get filtered out.

Missing job title match in resume

The job title on your resume serves as a critical identifier for ATS software. A comprehensive analysis by Jobscan examining over 2.5 million resumes discovered that applications containing the exact job title from the posting received 10.2 times more interview requests than those without it. This striking difference highlights why job titles matter so much in the digital screening process.

Moreover, over 55.3% of recruiters specifically filter candidates by job titles when searching their ATS database. Consequently, if your resume uses different terminology—even slightly—than what appears in the job description, you might be overlooked despite having the perfect qualifications.

Consider this real-world example: a professional whose official title was “Technical Compliance Engineer” had responsibilities that actually aligned with a Customer Success or Project Management role. When using their official title during job searches, recruiters either ignored their profile or became confused because the title didn’t match the listed responsibilities. This mismatch illustrates how rigid ATS keyword matching can create artificial barriers for qualified candidates.

Lack of required keyword density

ATS systems heavily rely on keyword matching when evaluating resumes. Over 99.7% of recruiters use keyword filters to search for candidates within their ATS. These systems scan for specific terms that align with the job description, and without these critical keywords, your resume won’t appear in search results.

The ideal keyword density for modern ATS systems typically falls between 0.5% and 2%. This means each important keyword should appear approximately once or twice per 100-200 words—enough to be recognized without appearing as keyword stuffing. Notably, excessive repetition of terms not only makes your content harder to read but can raise red flags for recruiters reviewing your application.

Strategic placement of keywords matters as much as their frequency. ATS systems often prioritize scanning specific sections of your resume, including:

• Professional summary or headline
• Skills section
• Experience descriptions

To optimize keyword integration, tailor each resume to the specific job you’re applying for rather than using the same document for every application. This customization requires reviewing the job description carefully and incorporating relevant terms throughout your document.

Use of incompatible file formats

The format of your resume can make or break your chances of passing through an ATS, regardless of your qualifications. When using an incompatible file format, your carefully crafted resume might appear as jumbled, unreadable text to the system.

The safest file formats for ATS compatibility include:

• .docx (Microsoft Word document): Works seamlessly with most ATS platforms
• .pdf (Portable Document Format): Generally accepted by modern systems, but must be text-based rather than scanned

In contrast, you should avoid formats like image files (.jpg, .png), web formats (.html), Apple Pages (.pages), OpenDocument (.odt), Rich Text Format (.rtf), and password-protected or scanned documents. Despite being visually appealing, these formats often confuse ATS systems, preventing proper parsing of your information.

Beyond file type, complex layouts can also cause parsing failures. ATS cannot interpret tables, graphics, headers/footers, or unusual fonts. Additionally, ensure your contact information appears within the main body of the resume rather than in headers or footers, as vital details in these areas may be overlooked by the system.

Understanding these common filtering mechanisms helps explain why qualified candidates often fail to progress through the initial screening stage, despite having the skills and experience needed for the role.

Common Resume Formatting Issues That Break ATS Parsing

Behind every rejected application often lies a simple formatting issue. The way your resume is structured can make or break its chances of passing through an applicant tracking system (ATS). Even though you might be perfectly qualified for a position, poor formatting choices can prevent your information from being properly extracted and analyzed.

Tables and columns causing data loss

Most applicant tracking systems struggle significantly with tables and columns, often resulting in critical information being overlooked or misinterpreted. When an ATS encounters a table or column layout, it frequently scrambles the order of your content, skips sections entirely, or misplaces essential keywords needed for successful candidate matching.

Consider this real-world scenario: a job seeker’s resume with tables had only the work experience section successfully parsed by the ATS. The system completely ignored their skills section, “About” profile, contact information, and portfolio links. This single formatting choice effectively rendered most of their qualifications invisible to recruiters.

The parsing process typically converts your resume to plain text, stripping away formatting elements. Tables particularly disrupt this process because the software reads documents in a linear, top-to-bottom flow. When information is arranged in columns or tables, the ATS might read across rows rather than down columns, creating nonsensical text combinations and destroying the logical flow of your information.

Graphics and icons disrupting text extraction

Visual elements may enhance your resume’s appearance to human eyes, but they create significant obstacles for applicant tracking software. ATS systems are primarily designed to extract and analyze plain text, meaning they cannot interpret images or graphics. Any information embedded within visual elements is likely completely ignored during parsing.

The consequences of including graphics extend beyond just the loss of that specific content. Graphics and icons can:

• Disrupt the document’s reading flow, causing the ATS to misinterpret or skip nearby text sections
• Break the connection between related information (such as separating a job title from its company name)
• Decrease overall keyword density by taking up space that could otherwise contain searchable text
• Introduce non-standard fonts embedded within graphics that cause parsing errors

Particularly problematic are visual section labels. If you use an image to mark a section like “Skills,” the ATS might fail to recognize this section entirely since it cannot interpret the image as a text heading. Even charts or infographics displaying your skills or experience levels will likely be completely missed.

Header and footer content being ignored

Placing vital information in headers or footers represents one of the most common yet easily avoidable ATS parsing errors. Many applicant tracking systems simply cannot “read” text located in these sections. This limitation can be especially problematic when job seekers place their contact information in these areas.

Recruiters consistently report that ATS software struggles with parsing text from:

• Headers
• Footers
• Text boxes
• Tables (even with invisible borders)

The problem occurs because many ATS systems focus primarily on the main body content, treating headers and footers as separate document components. Consequently, critical information like phone numbers, email addresses, or LinkedIn profiles may never be extracted if placed in these locations.

To ensure proper parsing, all essential information should appear within the main body of your resume. For contact details specifically, place them at the top of the document but outside header sections, using standard margins (typically one-inch all around). This approach guarantees that both human reviewers and automated systems can access your information.

Understanding these common formatting pitfalls helps explain why even well-qualified candidates sometimes fail to progress through automated screening processes. By avoiding these issues, you significantly increase your resume’s chances of successful ATS parsing and human review.

How to Optimize Resumes for Applicant Tracking Systems

Success with applicant tracking systems (ATS) isn’t about gaming the system—it’s about aligning your resume with how these technologies work. Nearly 90% of Fortune 500 Companies use ATS to manage their high volumes of job applications, making optimization essential for modern job seekers.

Using standard section headings like ‘Work Experience’

The section headers on your resume play a crucial role in ATS compatibility. Initially, focus on using conventional section titles that ATS software immediately recognizes. Research shows that applicant tracking systems rely on standard labels to pinpoint your qualifications.

Most importantly, stick to these proven section headings:

• “Work Experience” or “Professional Experience” (not “Career Journey”)
• “Education” (not “Learning Path”)
• “Skills” (not “Capabilities”)
• “Certifications” or “Licenses” (where applicable)

This standardization helps the software correctly categorize your information. Each major section needs its own distinct heading—avoid combining sections like “Education and Certifications” as this can confuse the system. Furthermore, consider formatting these headers in ALL CAPS to make them instantly recognizable to the ATS.

Tailoring resume keywords to job description

Keyword optimization represents the cornerstone of ATS success. Typically, employers feed specific keywords into their applicant tracking software when creating job openings, often drawing these terms directly from the job description. Without these job-specific keywords, your resume may never reach human reviewers.

In order to identify the right keywords:

1. Study the job posting carefully, looking for terms mentioned multiple times
2. Pay special attention to hard skills, certifications, and tools in the description
3. Examine both industry-specific and role-specific terminology

Once identified, incorporate these keywords throughout your resume—especially in your summary, skills section, and work experience bullets. The exact phrasing matters significantly, as ATS doesn’t always recognize synonyms. For example, if the job description mentions “Adobe Creative Suite” but your resume says “Adobe Creative Cloud,” your application might be overlooked despite having the needed skill.

First and foremost, ensure your resume contains the exact job title you’re applying for, as 55.3% of recruiters filter by job titles when searching their ATS database. For maximum reach, include both acronyms (e.g., “MBA”) and their full forms (e.g., “Master of Business Administration”).

Avoiding keyword stuffing and repetition

Although keywords are vital, balance remains equally important. Keyword stuffing—the practice of unnaturally cramming terms into your resume—can backfire dramatically. Both ATS systems and human recruiters recognize this tactic, which makes your resume harder to read and understand.

Instead, aim to use keywords naturally throughout your resume. Ideally, weave them into descriptive, achievement-oriented bullet points rather than simply listing them as skills. Additionally, incorporate keywords in context, showing how you applied these skills in real situations.

The optimal keyword density typically falls between 0.5% and 2%—meaning each important keyword should appear approximately once or twice per 100-200 words. This density ensures recognition without appearing forced or repetitive.

Finally, remember that customization is essential. A “one-size-fits-all” approach doesn’t work with applicant tracking systems. As a result, you should tailor each resume to the specific position, prioritizing the most relevant skills and experiences for that particular role. This targeted approach not only helps your resume pass through ATS filters but also makes a stronger impression when it reaches human reviewers.

ATS Limitations That Impact Top Talent Discovery

Behind the efficiency of applicant tracking systems lies a troubling reality: many qualified candidates never make it through screening. The same technology that streamlines hiring processes often creates unexpected barriers to discovering exceptional talent.

Inability to assess soft skills or potential

Applicant tracking systems excel at identifying hard skills yet struggle fundamentally with evaluating crucial soft skills and growth potential. These systems primarily scan for keywords related to technical qualifications, completely missing personality traits and interpersonal abilities vital for job success. Unlike human recruiters who can recognize adaptability, leadership capability, and problem-solving skills through nuanced resume review, ATS operates with binary logic—either candidates possess specific keywords or they don’t.

Furthermore, ATS algorithms cannot effectively gage a candidate’s capacity for growth. Instead, they focus exclusively on past experiences rather than future potential. This limitation proves particularly problematic when evaluating candidates with unconventional backgrounds or career transitions whose adaptability might make them valuable long-term assets despite not precisely matching current job requirements.

Bias introduced by rigid filtering rules

Beyond missing qualitative attributes, ATS systems frequently perpetuate bias through their rigid filtering mechanisms. Research from the National Bureau of Economic Research revealed algorithms tend to favor resumes with “white-sounding” names, resulting in a 50% lower callback rate for candidates with “ethnic-sounding” names. This occurs primarily because these systems often train on historical hiring data that reflects past inequalities.

Additionally, ATS platforms heavily prioritize traditional career paths, inadvertently excluding candidates from diverse backgrounds, industries, and educational experiences. The Harvard Business Review has identified significant bias areas within ATS algorithms, particularly around gender, race, and socioeconomic background. For instance, applications from women were 1.5 times more likely to be overlooked by these algorithms compared to their male counterparts.

Over-reliance on automation without human review

Perhaps most concerning, many organizations implement ATS as a complete replacement for human screening rather than as a complementary tool. This over-automation creates a concerning scenario where qualified candidates get rejected without any human ever reviewing their applications.

Unlike machines, human recruiters possess intuition and empathy that allow them to see beyond rigid criteria. They can recognize transferable skills, understand non-linear career paths, and identify potential that algorithms simply cannot detect. A human reviewer might value someone with diverse experiences or see promise in a candidate who doesn’t precisely check every box but demonstrates exceptional aptitude in other areas.

Consequently, companies relying too heavily on automated systems risk homogenizing their workforce, potentially depriving themselves of fresh perspectives and innovative problem-solving approaches. The most effective recruitment strategies thus blend technological efficiency with meaningful human oversight.

Tools and Techniques to Test Resume Compatibility

After optimizing your resume for applicant tracking systems, the next critical step is testing its compatibility before submission. With studies showing only 15% of resumes making it past ATS filters to reach hiring managers, verification becomes a crucial part of your application strategy.

Using resume scanners like Jobscan

Jobscan stands out as a leading ATS compatibility testing tool that analyzes resumes against specific job descriptions. The platform’s proprietary AI technology compares your document to the position you’re targeting, highlighting keyword matches and potential gaps. Users who leverage Jobscan’s tools report a 50% increase in interview chances, primarily because the system reveals exactly which skills and keywords recruiters are searching for in candidates.

The process works by pasting your resume alongside the job description into the scanner. Afterward, you receive a detailed match rate report showing how to optimize your document for better results. Jobscan specifically evaluates hard skills, soft skills, and keywords from the job listing, giving you a clear roadmap for improvement.

Checking ATS readability with plain text view

A simple yet effective technique involves converting your resume to plain text format. Prior to submission, copy your entire resume content and paste it into a basic text editor. Next, review this stripped-down version thoroughly—if information appears jumbled or sections become misplaced, these same issues will likely occur during ATS parsing.

Throughout your plain text review, check specifically for:

• Headings that shifted into the middle of content sections
• Characters that didn’t convert properly
• Missing information compared to your original document

TopResume notes that if details from your original resume are missing in the plain text version or appear disorganized, your document requires editing before it becomes ATS compliant.

Validating keyword match score before submission

Most resume checkers provide a numerical score indicating ATS compatibility. Typically, a good score on an ATS resume scan is 80% or higher. This benchmark generally ensures your resume progresses to human reviewers who make interview decisions.

Whenever your score falls below this threshold, focus on incorporating more job-specific terminology. Several platforms including Enhancv examine not just keywords but overall parsability, considering factors like file type, readable contact information, and industry-specific terms.

Conclusion

Applicant tracking systems have fundamentally changed how companies recruit talent, yet they create significant barriers between qualified candidates and potential employers. Throughout this article, we explored how these digital gatekeepers function, why they reject promising candidates, and what steps job seekers must take to navigate this technology-driven landscape.

The statistics speak volumes – 75% of resumes never reach human eyes because of formatting issues alone [22]. Consequently, understanding ATS mechanics becomes essential for anyone serious about their job search. Your perfectly crafted resume means nothing if the system can’t properly parse it.

Several key strategies emerge from our analysis. First, standard formatting proves crucial – avoid tables, graphics, and header content that confuse parsing algorithms. Second, keyword optimization remains non-negotiable, with careful attention to matching job descriptions without artificial stuffing. Third, testing your resume before submission significantly increases your chances of clearing the initial screening.

Perhaps most importantly, we must acknowledge the inherent limitations of these systems. ATS software fails to capture soft skills, introduces bias through rigid filtering, and often replaces rather than complements human judgment. For employers, this means potentially missing exceptional candidates whose qualifications exist beyond simple keyword matches.

The future of hiring likely involves both technological efficiency and human discernment. Until then, job seekers must adapt their application strategies accordingly. Though frustrating, ATS optimization represents a necessary skill in today’s competitive job market. Armed with the knowledge from this article, you can significantly improve your chances of making it past the digital gatekeeper and securing that coveted interview.

Remember – behind every ATS stands an actual person who will eventually review your application. Optimize for algorithms first, but always write with that human reader in mind.

FAQs

Q1. How can I optimize my resume for Applicant Tracking Systems (ATS)? 

To optimize your resume for ATS, use standard section headings like “Work Experience,” tailor keywords to match the job description, and avoid complex formatting such as tables or graphics. Stick to common fonts, use a .docx or .pdf file format, and ensure your contact information is in the main body of the resume, not in headers or footers.

Q2. Why might qualified candidates get filtered out by ATS? 

Qualified candidates may be filtered out due to missing job title matches, lack of required keyword density, or use of incompatible file formats. ATS systems heavily rely on exact keyword matching, so even slight variations in terminology can cause a resume to be overlooked despite the candidate’s qualifications.

Q3. What are the limitations of Applicant Tracking Systems in talent discovery? 

ATS have significant limitations in assessing soft skills, recognizing potential, and evaluating candidates with non-traditional backgrounds. They often introduce bias through rigid filtering rules and struggle to recognize transferable skills or unique experiences that might make a candidate valuable.

Q4. How can I test if my resume is ATS-compatible? 

You can test your resume’s ATS compatibility by using resume scanners like Jobscan, checking readability in plain text format, and validating your keyword match score. Aim for a compatibility score of 80% or higher to increase your chances of passing through ATS filters.

Q5. Do Applicant Tracking Systems automatically reject candidates? 

While ATS don’t typically automatically reject candidates, they do filter and rank resumes based on preset criteria. Human recruiters often review applications that meet a certain threshold set by the ATS. However, if your resume doesn’t contain the right keywords or is improperly formatted, it may never reach a human reviewer.