How ATS Resume Scanning Works

Understanding Applicant Tracking Systems is the key to getting your resume seen by hiring managers. Here's everything you need to know.

What is an ATS?

An Applicant Tracking System (ATS) is software used by employers to collect, sort, scan, and rank job applications. Over 98% of Fortune 500 companies use an ATS, and about 75% of resumes are rejected by ATS before a human ever sees them.

Popular ATS systems include Workday, Taleo, Greenhouse, Lever, and iCIMS. Each has different parsing algorithms, but they all look for similar things: relevant keywords, proper formatting, and clear section organization.

How ATS Scans Your Resume

Parsing

The ATS extracts text from your resume and breaks it into sections: contact info, work experience, education, skills, etc. Complex formatting like tables, columns, and graphics can break parsing.

Keyword Matching

The system compares your resume against the job description, looking for matching skills, job titles, certifications, and industry terms. Missing keywords can eliminate you from consideration.

Scoring

Based on keyword matches and other factors, the ATS assigns a score to your application. Only top-scoring resumes get forwarded to recruiters for human review.

Ranking

Recruiters see candidates ranked by match percentage. If you score below the threshold, your resume may never be seen regardless of your qualifications.

The Importance of Resume Keywords

Keywords are the specific terms and phrases that describe the skills, qualifications, and experience required for a job. They fall into several categories:

Hard Skills

Technical abilities: Python, JavaScript, SQL, Adobe Photoshop, SEO, Data Analysis, Project Management, etc.

Soft Skills

Interpersonal abilities: Leadership, Communication, Problem-solving, Teamwork, Time Management, Critical Thinking, etc.

Industry Terms

Field-specific language: Agile, HIPAA, GAAP, KPIs, CRM, B2B, SaaS, ROI, compliance terminology, etc.

Certifications & Tools

Credentials: PMP, CPA, AWS Certified, Google Analytics, Salesforce, HubSpot, Microsoft Office, etc.

Common ATS Mistakes to Avoid

Using tables, columns, or text boxes

Fix: Use a single-column layout with clear section headings

Submitting in incompatible formats

Fix: Use .docx or .pdf files (check the job posting requirements)

Using headers and footers for contact info

Fix: Place all contact information in the main body of the resume

Using images, icons, or graphics

Fix: Stick to text-only formatting; ATS cannot read images

Using creative section headings

Fix: Use standard headings: "Experience," "Education," "Skills"

Not including keywords from the job posting

Fix: Mirror the exact language used in the job description

Using abbreviations without spelling them out

Fix: Include both: "Search Engine Optimization (SEO)"

How ParseFit Helps You Beat the ATS

Instant ATS Score

See how your resume scores against ATS algorithms before you apply

Keyword Analysis

Identify missing keywords from the job description

Format Checking

Detect formatting issues that break ATS parsing

AI-Powered Suggestions

Get actionable tips to improve your resume content

Ready to Optimize Your Resume?

Upload your resume and a job description to get instant feedback on your ATS compatibility score.