You spend hours perfecting your resume, hit "Apply," and never hear back. Sound familiar? There's a good chance a human never even saw it. Over 97% of Fortune 500 companies—and a growing number of mid-size employers—use applicant tracking systems (ATS) to screen resumes before a recruiter reviews them.
Understanding how ATS software works is essential to getting your application in front of a real person.
What Is an ATS?
An applicant tracking system is software that employers use to collect, sort, scan, and rank job applications. When you submit a resume online, it typically passes through an ATS before reaching a hiring manager.
The ATS parses your resume into structured data—extracting your name, contact info, work history, skills, and education—then scores it against the job description. Resumes that don't match well enough are filtered out automatically.
Why Resumes Get Rejected by ATS
The most common reasons resumes fail ATS screening:
- Wrong file format. Some systems can't read PDFs with embedded images or complex layouts. Plain .docx or simple PDF formats work best.
- Missing keywords. If the job asks for "project management" and your resume says "oversaw projects," the ATS might not make the connection.
- Unusual section headings. Creative headers like "My Journey" instead of "Work Experience" confuse parsers.
- Graphics, tables, and columns. Most ATS software can't read content inside tables, text boxes, or multi-column layouts.
- Headers and footers. Many systems skip content placed in document headers or footers entirely.
How to Optimize Your Resume for ATS
Follow these guidelines to give your resume the best chance:
1. Use Standard Section Headings
Stick with conventional headings the ATS expects:
- Work Experience
- Education
- Skills
- Summary or Professional Summary
- Certifications
2. Mirror the Job Description's Keywords
Read the job posting carefully and incorporate the exact phrases it uses. If the posting says "data analysis," don't substitute "data review." ATS matching is often literal.
3. Keep Formatting Simple
- Use a single-column layout
- Avoid tables, text boxes, and graphics
- Use standard fonts (Arial, Calibri, Times New Roman)
- Use bullet points (dashes or standard dots)
- Save as .docx or a simple, text-based PDF
4. Include a Skills Section
A dedicated skills section lets you list keywords that might not appear naturally in your bullet points. This is especially useful for technical roles where tools and certifications matter.
5. Don't Keyword-Stuff
ATS algorithms are getting smarter. Stuffing keywords unnaturally or hiding white text on a white background can flag your resume as spam. Use keywords in context, within real descriptions of your experience.
How Nextstep Solves the ATS Problem
Nextstep takes the guesswork out of ATS optimization. When you build your Storyboard—a structured record of your career history—Nextstep can generate resumes that are:
- ATS-formatted with clean, parseable layouts
- Keyword-optimized based on the specific job description you're targeting
- Tailored per application so every resume matches the role
You don't need to manually cross-reference job postings or reformat your resume for every application. Nextstep handles the matching and formatting automatically.
Key Takeaways
- An ATS filters resumes before humans see them—optimization is not optional
- Use standard headings, simple formatting, and exact keywords from the job posting
- Avoid tables, graphics, and creative layouts
- Use Nextstep to generate ATS-ready, job-tailored resumes from your career data automatically