What is ATS and Why Companies Use Applicant Tracking Software

In today's job market, even a single job posting can attract hundreds of resumes within hours. While this might seem like a dream scenario for employers, it often creates a hiring nightmare. Here's why many companies have turned to Applicant Tracking Systems (ATS) to manage their recruitment processes.

Applicant Tracking Systems (ATS) are software tools that help companies to manage their recruitment process efficiently. They take care of the entire workflow — from job postings and application intake to interview scheduling and final selection.

A key function of ATS is resume parsing — the ability to automatically extract and organize information from submitted resumes. This includes identifying key details like name, contact info, work history, education, and skills. Parsed data is then compared against the job's requirements using filters and keyword matching. If a resume is not formatted clearly or lacks the right terminology, it may never reach a human recruiter. That's why resume compatibility with ATS — in terms of both structure and content — is crucial for being considered.

Person tossing resumes in the air, symbolizing ATS filtering

Now that we understand what an ATS is, let's take a closer look at the pain points recruiters deal with — and how these systems are built to address them. And, of course, how you can make sure you get noticed by hiring managers.

1. Overwhelming Volume of Applications

Despite strict job requirements, employers still receive a flood of resumes. Many of these are from candidates who do not meet even the basic criteria — wrong location, missing core skills, or working in unrelated industries. Manually sorting through these resumes is nearly impossible.

Some companies receive 1000+ applications for a single job posting within days or even hours. And many of those completely irrelevant, like Electric Engineer to Software Engineer. Why?

Automated resume submission tools, often powered by AI or bots, that mass-apply to thousands of jobs with little to no regard for role alignment. These tools scan job boards for openings and automatically submit the same resume to every — even if the candidate has no relevant experience, skills, or location fit.

For recruiters, this creates a massive signal-to-noise problem. Instead of reviewing a list of real candidates, they're flooded with irrelevant CVs that waste time and make it harder to identify top talent.

2. First-Line Filtering

ATS platforms are used to automatically filter out resumes that don't meet set parameters. These may include:

Required keywords (technologies, locations, titles)
Work authorization
Education level
Core skills (e.g., Java for a backend role or P&L for a finance role)

3. Human Review Is Limited

Hiring managers often review only the first 50–60 resumes, especially before referrals start coming in. After that, manual review becomes sporadic due to time constraints, so being early is critical if applying through ATS.

This is why we strongly recommend monitoring job boards multiple times a day and applying as soon as a relevant role is posted. Being among the first 10 applicants dramatically increases your chance of getting reviewed. But speed alone isn't enough — your resume and cover letter must be relevant and clearly tailored to the job. A generic resume oftentimes won't cut through the noise.

The reality is: the earlier your high-quality, well-targeted application reaches the hiring manager, the better your odds of advancing to the next stage. Especially in today's high-volume, tech-filtered hiring pipelines.

4. Resume format compatibility. Why Resume Format Simplicity Is Essential

Many resumes are designed with intricate layouts — multiple columns, charts, icons, images, or decorative fonts. While visually impressive, these formats often confuse Applicant Tracking Systems (ATS), which are primarily designed to read plain, structured text.

If your resume can't be parsed by the ATS, your application may be miscategorized or never reach a human reviewer at all. But the issue goes beyond readability.

Modern hiring platforms flag non-standard documents because these formats resemble phishing attempts or spam files. For security reasons, recruiters are often advised **not to open** resumes that don't render properly or trigger warnings. In large organizations, these files may be automatically discarded without notice.

That's why we recommend keeping your resume clean, minimal, and machine-friendly. A well-structured, text-based resume won't just pass through filters — it will be safer, faster, and more professional.

5. Reducing Hiring Risk

ATS systems are meant to standardize applications and allow hiring teams to compare candidates objectively. They help highlight candidates who meet all required criteria, minimizing the chance of missing a great hire hidden among poor-fit applications.

But for most job seekers, these systems are a black box. Many people have no idea about the inner workings of ATS filters, and when they get no replies, they assume the job market has dried up or they're simply not good enough. That's not always the case.

ATS platforms are far from perfect—they're still evolving—but they do follow predictable logic. If your resume is in the right format and speaks directly to the role using the right keywords, you're far more likely to be seen. That's why giving ATS "what it wants"—a properly structured resume with relevant content—isn't gaming the system, it's playing by the rules.

How to Stand Out

If you're applying online, your resume should:

Clearly match the job requirements, but be honest about your skills and experience
Use common terminology found in the job description and phrase your experience in accordance with the job description
Highlight key skills and technologies early
Avoid overly complex formatting or graphics
Use a professional, clean design that is easy to read
One, maximum two pages. Up to 1MB in size.

We are here to help you!

We don't mass-apply. At Linked CV Builder, we believe in the opposite approach: crafting tailored, role-specific resumes that you send manually — after reviewing the opportunity on LinkedIn (or other job boards).

We focus on the facts, use precise language, and apply smart keyword strategies to improve your visibility and compatibility with ATS systems.

We don't add to the noise — we help you stand out with the skills you genuinely bring, using precise, role-matched wording without exaggeration.

In the world of ATS, relevance and timing aren't optional — they're your biggest allies.