What Is ATS? Complete Guide to Applicant Tracking Systems

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What Is an Applicant Tracking System (ATS)?

An Applicant Tracking System (ATS) is software used by employers to organize, search, and manage job applications. Understanding how it works helps you create resumes that are easier for recruiters to find and evaluate.

Step-by-Step Friendly Guide
5 Min Reading Time
Updated 2026
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Quick Answer

An Applicant Tracking System (ATS) is recruitment software that companies use to receive, organize, search, and filter job applications. Contrary to popular belief, an ATS does not automatically reject resumes because they look simple. Instead, it helps recruiters efficiently manage hundreds or thousands of applications by extracting important information such as skills, experience, education, and keywords.

In This Guide

What Is an Applicant Tracking System?

An Applicant Tracking System, commonly called an ATS, is software used by businesses, recruiters, and hiring teams to manage the hiring process. Instead of reviewing every application manually, employers use ATS platforms to collect resumes, organize candidates, search applications using keywords, and track each applicant throughout the recruitment process.

Think of an ATS as a central database for hiring. Every resume submitted through a company's careers page or many popular job boards is typically stored inside the ATS, allowing recruiters to quickly find candidates with the skills, experience, certifications, or education they are looking for.

Important

An ATS is designed to help recruitersโ€”not replace them. Hiring decisions are still made by people. The software simply makes managing large numbers of applications faster and more organized.

Why Do Companies Use ATS Software?

Large organizations often receive hundreds or even thousands of applications for a single position. Reading every resume manually from start to finish would require significant time and resources. Applicant Tracking Systems streamline this process by organizing applications, making candidate information searchable, and helping recruiters quickly identify applicants who appear relevant for a specific role.

Organize Applications

Keep thousands of resumes in one searchable database.

Search Candidates

Recruiters can search by skills, experience, education, certifications, and keywords.

Track Hiring

Follow candidates through every stage of the recruitment process.

Save Time

Allow recruiters to spend more time interviewing qualified candidates instead of organizing paperwork.

How Does an Applicant Tracking System Work?

While every ATS platform is different, most follow a similar hiring workflow. The system stores resumes, extracts important information, and gives recruiters tools to quickly search and compare candidates.

1

Resume Submitted

A candidate submits a resume through a company's careers page or a job board.

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2

Information Extracted

The ATS identifies sections such as work experience, education, skills, certifications, and contact information.

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3

Resume Indexed

Your resume becomes searchable using keywords and filters chosen by recruiters.

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4

Recruiter Reviews

Recruiters review the candidates that best match the position before deciding who moves forward.

Does ATS Automatically Reject Resumes?

This is one of the biggest misconceptions about Applicant Tracking Systems.

An ATS is primarily a database and management tool. Recruiters still decide who gets interviewed. The system helps them search resumes more efficiently by organizing applications and making important information easy to find.

โœ” What ATS Does

  • Stores resumes
  • Organizes applications
  • Extracts resume information
  • Makes resumes searchable
  • Tracks hiring stages

โœ– What ATS Doesn't Do

  • Hire employees
  • Replace recruiters
  • Automatically reject every simple resume
  • Understand resumes like a human
  • Guarantee interviews

Common ATS Myths

Myth #1

Fancy resume designs always perform better.

Reality:

Simple, readable resumes are usually easier for ATS software and recruiters to understand.

Myth #2

ATS instantly rejects resumes without keywords.

Reality:

Recruiters still decide who advances. Relevant keywords simply make resumes easier to discover.

Myth #3

Every company uses exactly the same ATS.

Reality:

Hundreds of ATS platforms exist, each with different capabilities and features.

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Frequently Asked Questions

What does ATS stand for?

ATS stands for Applicant Tracking System, software that employers use to manage and organize job applications.

Do all companies use ATS?

Many medium and large companies use Applicant Tracking Systems, while some smaller businesses still review applications manually.

Can ATS read PDF resumes?

Most modern ATS platforms can read properly formatted PDF files, although some employers may specifically request DOCX files.

Why should I tailor my resume?

Tailoring your resume to the job description helps recruiters quickly identify relevant skills and experience, increasing your chances of getting an interview.