All you need to know about ATS (applicant tracking systems)

Applicant Tracking Systems (ATS) are essential tools in modern recruitment, offering companies the ability to manage, streamline, and optimize the hiring process.

Whether you’re an internal recruiter, external recruiter, or headhunter, an ATS can save time, reduce manual tasks, and improve hiring outcomes.

Let’s break down everything you need to know about how ATS works, who can use it, what it costs, and how you can optimize your resume to get past ATS filters.

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What is an ATS?

An ATS, or applicant tracking system, is software used by recruiters and hiring managers to manage the recruitment process end-to-end, enhancing candidate engagement . ATS software allows recruiters to:

• Post and manage job listings on multiple platforms.
• Collect, store, and track resumes and applications.
• Automatically parse resumes to extract candidate details.
• Organize candidate profiles into searchable databases.
• Schedule interviews and communicate with candidates.
• Generate reports on hiring metrics and performance.

One of the key features of an ATS is resume parsing, which scans resumes to extract relevant candidate information—such as name, contact details, work history, education, and skills—and stores it in a structured format. This structured data enables recruiters to quickly search and filter candidates based on keywords, qualifications, or other criteria.

Can an ATS Be Used by a Headhunter?

Absolutely. Headhunters, also known as executive recruiters, often work on specialized and high-level positions that require a focused approach.

By using an ATS, headhunters can efficiently manage hundreds of resumes and applications, track communication with candidates, and organize talent pools for future searches.

Since headhunters typically recruit for leadership and executive roles, they often rely on ATS features such as:

• Advanced candidate scoring and ranking.
• Keyword search and resume filtering.
• Customizable hiring workflows.
• Automated communication to keep candidates informed.

Using an ATS helps headhunters quickly identify qualified candidates, manage relationships, and deliver a better experience to both clients and job seekers, ultimately improving candidate quality .

Can an External Recruiter Use an ATS?

Yes, external recruiters (agency recruiters or staffing firms) can and should use an ATS for effective candidate sourcing.

External recruiters often juggle multiple clients, job orders, and a large volume of candidates. An ATS helps them:

• Keep track of which candidates have been submitted to which clients.
• Maintain organized records of interviews, feedback, and candidate progress.
• Integrate with job boards and sourcing platforms to widen candidate reach.
• Schedule interviews and automate candidate communications.

ATS features designed for external recruiters include client-specific pipelines, vendor management integrations, and reporting tools to demonstrate progress to clients.

What Is the Cost of an ATS?

ATS pricing varies widely, depending on:

• The features offered (basic parsing vs. advanced AI).
• The number of active job postings or users.
• The size of your company or recruiting team.

Free ATS options exist for small teams and mid sized businesses with limited hiring needs. For instance, open-source ATS solutions or freemium versions of popular ATS platforms may provide basic resume tracking and parsing capabilities.

Paid ATS options range from $50/month for basic plans up to thousands of dollars per month for enterprise-grade solutions, addressing various hiring stages . Costs can also include implementation fees, integrations with other HR systems, customization, and user training.

When budgeting for an ATS, companies should consider:

• The scale of their hiring operations.
• The complexity of their hiring workflows.
• The importance of integrations with other HR tools (payroll, performance management, etc.).

Does an ATS Integrate with Other Tools or Platforms?

Yes. Integration is one of the most valuable aspects of a modern ATS. Most systems can integrate with:

• Email platforms (Outlook, Gmail) to sync communication.
• Calendar tools for interview scheduling (Google Calendar, Outlook Calendar).
• Job boards and social media (LinkedIn, Indeed, Glassdoor) to post job listings automatically.
• HR software like payroll, onboarding, performance management, and learning management systems.
• Background check services, e-signature solutions, and video interview tools.

Integrations streamline processes, reduce duplicate work, and ensure data consistency across systems. This holistic approach improves efficiency and enhances the candidate and recruiter experience.

Is There Any Free Applicant Tracking System?

Yes, several ATS providers offer free or freemium plans. Examples include:

• Zoho Recruit – free for a single recruiter with basic features.
• Breezy HR – offers a free version with limited pipelines and basic candidate tracking.
• Recruitee and OpenCATS – open-source options popular among small businesses or tech-savvy teams.

However, free ATS systems usually have limitations in features like advanced reporting, AI-powered matching, or integrations. They may be suitable for startups or small businesses with simple hiring needs but may fall short for organizations with complex processes or high hiring volumes.

Does an ATS Use Machine Learning Technology?

Many modern ATS platforms have integrated machine learning (ML) capabilities to improve hiring efficiency and accuracy. ML-powered features can include:

• Resume matching algorithms that identify the best-fit candidates based on past hires or job descriptions.
• Predictive analytics that forecast a candidate’s likelihood of success or turnover risk.
• Automated interview scheduling that considers candidate and interviewer availability.
• Chatbots and conversational AI to answer candidate questions 24/7.

By analyzing historical hiring data, machine learning can help recruiters spot patterns, reduce unconscious bias, and make better hiring decisions. However, not all ATS systems use ML—this capability is typically found in mid- to high-tier solutions.

Are Resume Keywords Important for an ATS?

Yes! Keywords are crucial when applying through an ATS. These systems scan resumes for specific keywords that match the job description. Resumes that lack relevant keywords may be filtered out before a human recruiter ever sees them.

Keywords can include:

• Job-specific terms (e.g., "JavaScript," "financial modeling").
• Industry certifications (e.g., "CPA," "PMP").
• Software or tools (e.g., "Salesforce," "AutoCAD").
• Action verbs that align with job responsibilities.

Proper use of keywords improves the chances of your resume ranking highly when recruiters search the ATS database.

How to Select Which Keywords to Add to a Resume

Selecting the right keywords starts with studying the job posting carefully:

1. Identify Required Skills: Look for skills listed under “Requirements” or “Qualifications.”
2. Analyze Responsibilities: Incorporate keywords reflecting core tasks (e.g., “project management”).
3. Include Industry Terms: Use terminology common in the role’s industry.
4. Use Synonyms: For example, if the posting mentions “team leadership,” also include “people management.”

You can add keywords naturally in sections like your Professional Summary, Experience, Skills, and Certifications.

Is It Possible to Add Multiple Keywords in a CV to Pass the ATS Filtering?

Yes, adding multiple relevant keywords increases the chances of your resume passing ATS filters. Here are tips for effective keyword use:

• Don’t stuff keywords unnaturally; ATS algorithms also look for context.
• Use keywords in bullet points describing achievements or responsibilities.
• Repeat important keywords in different sections (e.g., work history and summary).
• Include variations of keywords (e.g., “SEO” and “Search Engine Optimization”).

Avoid repeating the same keyword excessively, which can make your CV look spammy.

Are There Tools for Jobseekers to Optimize Their CV?

Yes, many tools are available to help jobseekers optimize their resumes for ATS:

• LoopCV: Suggests keywords, automates applications, and tailors resumes.
• Jobscan: Compares your resume with a job description to highlight missing keywords.
• Resumatch.io: Analyzes keyword density and ATS compatibility.
• SkillSyncer: Grades your resume based on keyword relevance and provides optimization tips.

These tools improve your chances of getting past ATS filters by ensuring your resume aligns with the job’s requirements.

Additional Tips to Improve ATS Success

Beyond keywords, here’s how to further optimize your resume for ATS:

• Use a Simple Format: Avoid images, tables, or fancy fonts. Stick to .docx or .pdf formats with standard headings like “Experience” and “Education.”
• Label Sections Clearly: Use headings recognized by ATS parsers, e.g., “Skills,” “Certifications.”
• Avoid Headers & Footers: Some ATS cannot parse text in headers or footers.
• Include Contact Info in the Body: Not in a separate text box or image.
• Customize Each Resume: Tailor your keywords and achievements for every job you apply for.
• Proofread: Typos in important keywords can cause you to miss search results in the ATS.

Why Choosing the Right ATS Matters for Employers

For employers, the recruiting software ATS you choose affects your ability to:

• Attract and engage top talent.
• Reduce time-to-hire.
• Improve candidate experience.
• Maintain compliance with data privacy laws (e.g., GDPR, CCPA).
• Analyze and optimize recruitment metrics.

When selecting an ATS, consider factors like:

• Scalability as your company grows.
• Mobile accessibility for recruiters and candidates.
• Integration options with your existing HR tech stack.
• Support for diversity and inclusion efforts.

The Role of ATS in Modern Recruitment Strategy

An ATS isn’t just a tool for tracking resumes. It’s the foundation of a data-driven recruitment strategy. By using an ATS effectively, organizations can:

Build Talent Pipelines: Store and nurture relationships with passive candidates.

Analyze Metrics: Optimize sourcing channels, reduce cost-per-hire, and improve quality-of-hire.

Enhance Collaboration: Share candidate profiles and evaluations with hiring managers.

Ensure Compliance: Maintain records of hiring decisions to meet regulatory requirements.

How to Train Your Recruiting Team to Use an ATS Effectively

One of the biggest challenges employers face after implementing an ATS is getting everyone on the recruiting team up to speed. A powerful ATS can only deliver value if recruiters, hiring managers, and HR staff know how to use it properly.

Here’s how to maximize adoption and success:

1. Provide Structured Training: Create onboarding programs for new team members that include ATS best practices. Offer step-by-step guides, video tutorials, and live demos.
2. Customize Training for Different Roles: Hiring managers, recruiters, and coordinators will use the ATS differently. Tailor their training so each team member understands the specific features relevant to their role.
3. Host Refresher Courses: ATS platforms frequently update with new features. Regular training ensures your team keeps up and continues using the system efficiently.
4. Create an Internal Knowledge Base: Document common questions, workflows, and troubleshooting steps in a shared resource center to encourage self-service learning.
5. Track Usage Metrics: Many ATS platforms allow you to measure team adoption. Identify who’s underusing the system and offer personalized coaching.

Proper training ensures your investment in an ATS pays off through increased efficiency, better data accuracy, and a smoother hiring process.

How ATS Technology Impacts the Candidate Experience

A well-configured ATS doesn’t just benefit recruiters—it directly affects how candidates perceive your organization. Today’s job seekers expect quick, easy, and personalized hiring processes.

Here’s how your ATS can either help or hurt your employer brand:

Positive Candidate Experience with ATS:

• Automated emails acknowledge applications instantly, reassuring candidates their materials were received.
• Mobile-friendly application portals allow candidates to apply on any device.
• Self-service interview scheduling reduces waiting time and demonstrates respect for candidates’ time.
• Integration with video interview tools offers flexibility for remote interviews.

Negative Candidate Experience with ATS:

• Overly complicated application forms lead candidates to abandon the process.
• Lack of communication creates a black hole effect, where applicants never hear back.
• Outdated ATS platforms with poor user interfaces frustrate job seekers.

Optimizing your ATS workflows for candidate experience—such as by shortening application times and sending timely updates—helps you attract top talent and stand out in a competitive market.

ATS Trends Shaping the Future of Recruitment

ATS technology continues to evolve rapidly, with new trends making systems smarter and more efficient. Staying aware of these trends helps employers and recruiters remain competitive:

Artificial Intelligence and Predictive Analytics: AI is moving beyond simple resume matching. ATS platforms can now predict candidate success, estimate time-to-fill, and identify hiring bottlenecks.

Conversational AI: Chatbots integrated into ATS systems can guide candidates through applications, answer FAQs, and pre-screen applicants with automated questions.

Diversity Hiring Tools: New features help employers reduce unconscious bias by anonymizing resumes or flagging biased job descriptions, contributing to fairer hiring practices.

Data Privacy Enhancements: Compliance with privacy regulations (GDPR, CCPA) is a top priority. Modern ATS solutions include tools for secure data storage, candidate consent management, and automated data deletion.

Deeper Integrations: ATS platforms are becoming hubs for all talent acquisition activity, integrating seamlessly with CRM systems, assessments, onboarding, and employee referral programs.

Investing in an ATS with forward-looking features helps organizations stay agile in an evolving hiring landscape.

Common Mistakes to Avoid When Optimizing Your Resume for ATS

Optimizing your resume for ATS is essential when responding to job requisitions , but job seekers often make mistakes that can backfire:

• Keyword Stuffing: Repeating keywords excessively makes your resume look unnatural. ATS algorithms can flag this as suspicious.
• Irrelevant Keywords: Don’t pad your resume with keywords unrelated to your experience or the job. Recruiters can spot resumes trying to game the system.
• Graphic-heavy Formats: ATS software may struggle to parse resumes with tables, columns, or images, resulting in lost information.
• Inconsistent Terminology: If the job posting says “Project Management,” but your resume only uses “Program Leadership,” you might miss important keyword matches. Use the same language as the job description whenever possible.

Avoid these pitfalls to ensure your resume passes ATS scans and makes it to a human reviewer.

Should You Tailor Every Resume for Each Application?

Yes—tailoring your resume is essential in today’s competitive job market. While it may seem time-consuming, customizing your resume for each job significantly increases your chances of getting through the ATS and landing an interview.

Here’s why:

• Job-specific keywords improve your ATS ranking.
• Highlighting relevant achievements shows you’ve done your research and understand the employer’s needs.
• Aligning your resume with company culture or mission demonstrates genuine interest.

Tools like LoopCV can help automate parts of the tailoring process, saving time while still giving you a competitive edge.

Final Thoughts on ATS and Modern Hiring

ATS systems are no longer optional for growing businesses—they’re a necessity for efficient, compliant, and scalable hiring efforts.

When used properly, they empower recruiters to focus on building relationships instead of getting bogged down in manual tasks.

For job seekers, understanding how ATS systems work, avoiding common mistakes, and strategically incorporating keywords are the keys to unlocking more opportunities.

The future of ATS will be defined by smarter automation, deeper analytics, and more candidate-centric features. Staying ahead of these trends ensures employers can attract the best talent, and candidates can find roles that truly match their skills and aspirations.

» FREE TRIAL: Get Started with LoopCV, Optimise your resume with the right keywords & Send Out 100s of Highly-Targeted Job Applications in <10 Minutes