Job Search Advice

Debunking the Top 3 ATS Myths

Do ATS's automatically reject candidates? Should you hide keywords within your resume? Read to learn about the basics of applicant tracking systems and common myths about them!

(Updated: ) - 4 min read
Kevin Shim
Written by
As a growth lead, Kevin manages Simplify's blogs, newsletter, and social media growth. He's an experienced job-seeker looking to help others by sharing the latest insights into recruiting.

In today's fast-paced job market, Applicant Tracking Systems (ATS) play a pivotal role in the hiring process. These systems have grown in popularity, and over 97% of Fortune 500 companies utilize an ATS. However, along with their widespread usage, several misconceptions have emerged regarding their functionality and impact.

Understanding how an ATS works is crucial to your job applications and landing interviews. Let's dismiss these myths and clarify how an ATS can influence your job search.

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Is the ATS responsible for the frustration of being ghosted or receiving rejection letters? Find out below 👇

What is an ATS?

Applicant Tracking Systems are software companies and recruiters use to manage the hiring process. They're involved in the recruitment process by managing job applications, parsing resumes, and screening candidates. These systems enhance efficiency by automating tedious tasks, allowing recruiters to focus on selecting the most qualified candidates for a role.

More specifically, recruiters can use them to filter for certain candidates (e.g. those with 2+ years of experience), score candidates based on set criteria, and track the progress of applicants. It's also important to note that there's a variety of different ATS software, each with slightly unique abilities.

Here are a few statistics on the usage of the top ATS systems by companies (data from Jobscan's 2023 Report):

  • Greenhouse (18.2%)
  • Lever (16.5%)
  • ICIMS (15.9%)
  • Workday (15.4%)
Now that we've gone through what an ATS is and how it works, let's dive into some myths that can change the trajectory of your job search!

Myth #1: Candidates are Auto-Rejected

Reality: While it's a common myth that applicants are quickly rejected without being seen by a recruiter, evidence suggests that the heavy majority of resumes are viewed at least once, with anecdotal evidence from recruiters suggesting that over 90% of submitted resumes are viewed.

"From my experience over the years, I can confidently say that 90-95% or more of all applications are reviewed by a human."
- Jan Tegze

Although there are variations from one ATS to another, many recruiters can be required to look at candidates before an ATS fully removes them from the candidate pool. For example, Greenhouse requires humans to look over and score candidates based on pre-set criteria by the employer—meaning your application will be viewed by a human.

Recruiters are still the ones setting preferences for what to look for in candidates, and candidates are not often auto-rejected immediately unless there are technical errors or major discrepancies between their background and the ideal candidate.

An important caveat: while a recruiter may look at your resume, it may only be for 6-7 seconds, meaning it's crucial that your resume is formatted clearly.
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Takeaway: Tailor your resume for the ATS, and for a human.

Align your experiences for the role, input the right keywords, and be visually easy to read so the recruiter can quickly find the information needed to make a decision.

Make sure to double-check your resume for typos and formatting errors.

Myth #2: Only Keywords Matter for Candidate Selection

Reality: While keywords are an important part of the process, many of these systems analyze additional information like experience, location, and education when evaluating candidates.

Recruiters typically define specific criteria beyond keywords to ensure a full assessment of applicants. This helps in identifying the most qualified candidates for further consideration.

The ATS also gives recruiters the ability to easily filter for specific criteria:

e.g. A recruiter may use a boolean search such as "Data Analyst AND SQL".

If you don't have the right experience ("Data Analyst") and the right keyword ("SQL"), you will not show up in the search and may be rejected from the role with limited consideration by the recruiter.

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Takeaway: Review your resume to make sure that all parts of it are optimized.

Focus on clearly including your graduation date (if relevant), labeling experiences clearly, and using the right keywords/skills.

Stand out in recruiter searches by using both the acronym and spelled-out versions of keywords: “Search Engine Optimization (SEO)" or "Customer Relationship Management (CRM)".
Not sure what skills you should include in your resume? Simplify's matching algorithm tells you exactly what skills each job posting is looking for. Check it out here!

Myth #3: ATS Eliminates the Need for Cover Letters

Reality: Many Applicant Tracking Systems have the ability to scan cover letters for keywords and other relevant information similar to a resume. A cover letter is a great chance to show the recruiter that you're putting in extra effort, and a chance to put in more information and keywords that can help you stand out during the recruiting process.

Not only are cover letters still being noticed with an ATS, 83% of recruiters claim that cover letters are an important part of their hiring decisions.

Especially in a competitive job market, writing a cover letter can be a game-changer for landing the role.

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Takeaway: Keep submitting cover letters, and tailor them just like you'd tailor your resume.

Focus on specific language, important experiences, and keywords based on the job description while emphasizing your interest in the role.
Spending too much time writing your cover letters?
Simplify+ has a built-in AI that writes your cover letters for you. Check it out here!

Summary: Are Applicant Tracking Systems the Problem?

While it's easy to blame Applicant Tracking Systems, they are simply a tool companies use to streamline their recruitment efforts. They can save time and effort for recruiters, but ultimately, the recruiters set the criteria for their ideal candidate and make the final hiring decision.

By formatting your resume clearly, including the right keywords and experiences, and writing tailored cover letters, you can maximize your chances of being noticed by recruiters in the context of this tool.

So the answer is no, the ATS is often not the culprit.

However, understanding how they operate in the context of recruitment can help you increase your chances of landing your next dream role.


Landing Your Dream Job with Simplify!

Debunking these ATS myths is crucial for job seekers. By understanding the realities behind these misconceptions, you can refine your job search strategies, make informed decisions, and stand out among other applicants. A balanced approach that focuses on quality applications, networking, customization, and understanding industry nuances will significantly enhance your job search success.

Looking for some extra support in getting past the ATS? Simplify is a platform that can help you streamline the process. Our platform offers a free keyword tool, resume builder, and cover letter AI. Don't hesitate to join our community and see how we can help you land your dream job!

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Looking for your dream job? Sign up on Simplify today and get matched with job opportunities that fit your skills and interests!