In today's highly competitive job market, companies increasingly rely on Applicant Tracking Systems (ATS) to streamline their hiring processes and make them faster and more efficient. These systems allow employers to quickly filter out candidates who may not be the best fit, ensuring that only the most relevant applications reach the hiring manager's desk and are provided with the opportunity of interviewing with them.

It's interesting to note that a whopping 90% of Fortune 500 companies use ATS software during recruitment. With these systems being so widespread, it's crucial to understand and create an ATS-compliant resume for every job you apply for.

So, What is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is a software application used by HR and Talent Acquisition teams to manage job openings. So when you apply for any job through the company's careers page, your resume gets stored in a database specific to that position. The ATS organizes these resumes, making it easier for HR professionals and recruiters to sift through them.

However, with some positions attracting over 100 resumes, there's a real possibility that not every resume will get reviewed. Therefore it is very important to optimize your resume for the ATS. An optimized resume increases the likelihood that it will make it through the initial screening process and land in front of a recruiter.

Let us start with understanding ATS Ranking and Scoring: What You Need to Know

Understanding how ATS ranking and scoring work can help you optimize your resume for better chances of getting noticed. Let us break down the process in simple terms.

Relevance Scoring: The Key to Getting Noticed

An ATS first scores or ranks resumes based on how well they match the job description. This process is known as relevance scoring. The system scans your resume for keywords and qualifications matching the job posting. The closer the match, the higher your resume scores. Typically, resumes that score 80% or above are more likely to be flagged for review by a human recruiter.

Automated Filtering: The Hidden Gatekeeper

Apart from scoring, the ATS also filters out resumes that don't meet certain criteria. For example, if your resume lacks key qualifications or relevant experience, it might be automatically rejected or set aside for further scrutiny. This means that if your resume doesn't hit the right notes, a person may never even see it.