TL;DR: 98.4% of Fortune 500 companies use Applicant Tracking Systems (ATS) to filter resumes before a human ever sees them. Up to 75% of qualified applicants get rejected at this stage—not because they're unqualified, but because their resumes aren't formatted correctly or lack the right keywords. This guide shows you exactly how ATS works, why your resume keeps getting rejected, and a complete checklist to make your resume ATS-friendly and finally start landing interviews.

You Applied to 50 Jobs and Heard Nothing. Here's Why.

You've spent hours perfecting your resume. You've applied to dozens—maybe hundreds—of positions. Your qualifications match. Your experience is relevant. And yet... radio silence.

Here's the uncomfortable truth: 98.4% of Fortune 500 companies use Applicant Tracking Systems to screen resumes before a recruiter ever lays eyes on them. And according to recent data, 99.7% of recruiters use keyword filters in their ATS to sort and prioritize applicants.

The average corporate job posting receives over 250 applicants. Only 4-6 of them—roughly 5%—will be invited to interview. The rest? Filtered out before a human ever reads their resume.

But here's the good news: beating ATS isn't about gaming the system or being the most qualified candidate. It's about formatting your resume correctly and using the right keywords. This guide will show you exactly how to do both.

What is an ATS (Applicant Tracking System)?

An Applicant Tracking System (ATS) is software that helps companies manage the hiring process by collecting, scanning, organizing, and ranking job applications. When you submit your resume through an online job portal, it doesn't go directly to a recruiter—it goes into the ATS first.

How ATS Works: The 3-Step Process

Parsing: The ATS reads your resume and extracts information like your name, contact details, work history, skills, and education. It organizes this data into a standardized format.
Keyword Matching: The system compares the contents of your resume against the job description. It looks for specific skills, qualifications, job titles, certifications, and industry terminology.
Ranking: Based on keyword matches and other criteria, the ATS assigns your application a score or ranking. Recruiters typically review the highest-scoring candidates first.

Why Companies Use ATS

With hundreds of applications per position, manually reviewing every resume would take weeks. ATS helps companies:

Manage volume: Process thousands of applications efficiently
Ensure compliance: Maintain records for legal and regulatory requirements
Standardize screening: Apply consistent criteria across all candidates
Save time: Reduce time-to-hire by up to 60%

The most popular ATS platforms include Workday (used by 39% of Fortune 500), SuccessFactors, Greenhouse, Lever, and Taleo.

Why 75% of Resumes Fail ATS Screening

Here's a sobering statistic: up to 75% of resumes are rejected at the initial ATS screening stage before a human ever sees them. But contrary to popular belief, ATS isn't a ruthless robot gatekeeping your career. Most rejections happen because of preventable mistakes.

The 5 Main Reasons Resumes Get Rejected

1. Formatting Issues (73% of Rejections)

73% of hiring managers reject candidates due to poor resume formatting. ATS systems struggle with:

Tables and columns: Multi-column layouts confuse parsing algorithms
Text boxes: Content inside text boxes may be ignored entirely
Headers and footers: Critical information placed here often isn't read
Graphics and images: ATS cannot "read" text embedded in images, charts, skill bars, or logos

A real example: A data analyst candidate was repeatedly rejected because their resume used non-standard headings like "My Professional History" instead of "Work Experience" and displayed skills in a table format that the ATS couldn't parse.

2. Wrong File Format

While PDFs preserve formatting beautifully for human readers, not all ATS systems can properly parse PDF files. Unless the job posting specifically requests PDF, submitting a .docx file is safer.

3. Missing Keywords

ATS scans for specific terms from the job description. If you describe yourself as a "people person" but the job requires "team collaboration," you might not match—even though you have the skill.

4. Spelling and Abbreviation Mismatches

ATS doesn't recognize misspelled words. And if you write "PM" but the system is looking for "Product Manager," you could miss the match. Always include both the abbreviation AND the full term.

5. Irrelevant Experience Presentation

73% of resume rejections occur because work experience doesn't match what the job requires. The key is tailoring your experience descriptions to mirror the language in each job posting.

How to Check if Your Resume is ATS-Friendly

Before sending your resume into the void, test it. Here are four methods to check your resume's ATS compatibility:

Method 1: Use an ATS Resume Checker Tool

Online tools can analyze your resume against a job description and identify issues. Popular options include Jobscan, Resume Worded, and TopResume's Free Review. These tools highlight missing keywords, formatting problems, and give you a compatibility score.

Method 2: The Plain Text Test

Open your resume in Word
Select All (Ctrl+A / Cmd+A) → Copy (Ctrl+C / Cmd+C)
Open Notepad (Windows) or TextEdit in plain text mode (Mac)
Paste (Ctrl+V / Cmd+V)

If your resume looks scrambled, jumbled, or is missing information, it will likely confuse an ATS too. The text should flow in a logical, readable order.

Method 3: Keyword Comparison Analysis

Copy the full job description into a word frequency tool
Identify the most commonly used skills, qualifications, and terms
Compare against your resume
Add missing relevant keywords (honestly—only include skills you actually have)

Method 4: File Format Testing

Save your resume as both .docx and .pdf
Upload both versions to a free ATS checker
Compare the parsing results
Use whichever format parses more accurately

The Complete ATS Resume Optimization Checklist

Follow this checklist to ensure your resume passes ATS screening and reaches human reviewers.

Formatting Rules

Fonts:

Use standard fonts: Arial, Calibri, Times New Roman, Georgia, or Helvetica
Size: 10-12 point for body text, 14-16 for headers
Avoid decorative or script fonts

Layout:

Single-column format only
Left-align all text
Use standard margins (0.5" to 1")
No tables, text boxes, or columns

Section Headings (Use These Exact Terms):

Professional Summary or Summary
Work Experience or Experience
Skills
Education
Certifications (if applicable)

What to Avoid:

Headers and footers (put contact info in body)
Images, logos, or photos
Charts, graphs, or skill bars
Icons or symbols
Shading or colored backgrounds
Underlines (use bold instead)

Keyword Optimization

Do:

Mirror exact phrases from the job description
Include both acronyms AND spelled-out terms (e.g., "SEO (Search Engine Optimization)")
Use industry-standard terminology
Place keywords in context within achievement statements
Include hard skills, software names, certifications, and tools mentioned in the posting

Example of keyword integration:

❌ Poor: "Good at managing projects"

✅ Better: "Led cross-functional project management initiatives using Agile methodology, resulting in 25% faster delivery times"

Don't:

Keyword stuff (repeating terms unnaturally)
Use white text to hide keywords (ATS and recruiters catch this)
Include skills you don't actually have

File Preparation

File Format:

Default: .docx (most compatible)
Only use PDF if specifically requested
Avoid .pages, .odt, or image-based formats

File Name:

Use: "FirstName-LastName-Resume.docx"
Avoid: "Resume_final_v3_UPDATED.docx"

Industry-Specific ATS Tips

Technology / Software Engineering

Include programming languages exactly as listed: "Python" not "python"
List frameworks and tools: React, Node.js, AWS, Docker
Include both "Software Engineer" and "Software Developer" if relevant
Mention methodologies: Agile, Scrum, CI/CD, DevOps

Healthcare

Include license numbers and certification acronyms (RN, BSN, CNA)
List specific systems: Epic, Cerner, EMR/EHR
Include compliance terms: HIPAA, patient care, clinical

Finance / Accounting

List certifications: CPA, CFA, Series 7, Series 63
Include software: QuickBooks, SAP, Oracle, Excel (advanced)
Use terms: Financial analysis, forecasting, compliance, audit

Marketing

Include tools: HubSpot, Salesforce, Google Analytics, SEMrush
List specialties: SEO (Search Engine Optimization), PPC, content marketing
Mention metrics: ROI, conversion rates, lead generation

Beyond ATS: The Complete Job Search Journey

Getting past ATS is only the first hurdle. Here's the reality of modern job searching:

The Funnel: 250+ applications → ~75 pass ATS → ~15 reviewed by recruiter → 4-6 phone screens → 2-3 interviews → 1 offer

Even with a perfectly optimized resume, you still need to:

Stand out to human reviewers after passing ATS
Ace the phone screen with clear, confident communication
Perform well in interviews across multiple rounds

This is where most qualified candidates actually lose opportunities. You can have the perfect resume, pass every ATS filter, and still not get the job because you weren't prepared for the interview.

The solution? Practice. Just as you wouldn't run a marathon without training, you shouldn't walk into interviews without practice. Research shows that candidates who do mock interviews are significantly more confident and perform better under pressure.

Frequently Asked Questions

How do I know if my resume passed ATS?

If you receive a rejection email within minutes of applying, your resume likely failed ATS screening. If you receive a personalized response, phone screen request, or hear back after days/weeks, your resume probably made it through to human review.

What file format is best for ATS?

.docx (Microsoft Word) is the most universally compatible format. While many modern ATS systems can read PDFs, some older systems struggle with them. Only use PDF if specifically requested.

Do all companies use ATS?

98.4% of Fortune 500 companies use ATS, and approximately 75% of all recruiters use some form of applicant tracking system. Even smaller companies increasingly adopt ATS as cloud-based options become more affordable.

Can ATS read PDFs?

Many can, but not all. PDF parsing varies widely between systems. Simple, text-based PDFs work best. PDFs with complex formatting, images, or created from scanned documents often fail. When in doubt, use .docx.

How many keywords should I include?

There's no magic number, but aim to naturally include 10-15 relevant keywords from the job description. Focus on the most frequently mentioned skills, qualifications, and tools. Never keyword stuff—use terms in context within achievement statements.

Should I create a different resume for each job?

Yes. Tailor your resume for each application by adjusting keywords to match the specific job description. You don't need to rewrite the entire resume—focus on the Professional Summary and Skills sections.

Will a recruiter still see my resume if I fail ATS?

Typically, no. Most ATS systems rank candidates by match score, and recruiters start reviewing from the top. Low-scoring resumes may never be viewed.

How long should an ATS resume be?

One page for early career (0-10 years), two pages for experienced professionals (10+ years). ATS doesn't penalize length, but human reviewers prefer concise, scannable content.

Key Takeaways

98.4% of Fortune 500 companies use ATS—your resume will be scanned by software before a human sees it
Up to 75% of resumes get rejected at the ATS stage due to formatting issues and missing keywords
Use a single-column layout with standard fonts, headings, and no images or tables
Mirror keywords from the job description, including both acronyms and spelled-out terms
Save as .docx unless PDF is specifically requested
Test your resume with an ATS checker before submitting
Tailor for each application—one generic resume won't cut it
ATS is just step one—interview preparation is what ultimately gets you the job

Ready to optimize your entire job search? Combine resume optimization with AI-powered interview practice—so you can land the job, not just pass the ATS.

Check Your Resume Now

Use JobJourney's ATS Resume Checker to see if your resume will pass applicant tracking systems. Get your compatibility score, identify formatting issues, and find missing keywords—all for free. Then use our Resume Analyzer to make sure your content is compelling enough to impress the humans who read it after ATS.