What is an applicant tracking system (ATS)?

6 min readPublished

An applicant tracking system, or ATS, is software that companies use to receive, store and organise job applications in one place so recruiters do not have to manage hundreds of emails by hand.

Most mid-size and large employers use one. Greenhouse, Lever, Workday, iCIMS and Taleo are among the most common. Understanding how they work helps you write applications that get read by a human, not lost in a database.

What an ATS actually does

When you submit an application, the ATS receives your resume and cover letter, converts them into structured data and stores that data against the job requisition. The recruiter then logs in and sees a list of candidates, not a pile of files.

The system extracts fields like your name, contact details, job titles, employers, dates and skills. It may also record where you applied from, how long you spent on the form and whether you answered knockout questions correctly. All of this becomes a searchable record that can sit in the database for months or years.

  • Receives applications from a careers page, job board or direct link
  • Parses resume text into structured fields
  • Stores every application against a specific job requisition
  • Lets recruiters search, filter and move candidates through stages
  • Sends automated status emails such as 'application received'

How ATS parsing works and why formatting matters

Parsing is the step where the ATS reads your resume file and tries to map text to the right fields. It looks for patterns: a phone number near the top, a section labelled 'Experience' followed by company names and dates, a section labelled 'Skills' followed by a list.

When formatting is unusual, parsing breaks down. A two-column layout can cause the ATS to read across both columns at once, mixing your job title with a skill from the adjacent column. Tables, text boxes, headers and footers, and graphics often produce garbled output. A plain, single-column document with standard section headings is the safest choice.

File format matters too. Most ATS accept both PDF and DOCX. Some older systems parse DOCX more reliably than PDF. If the application form specifies a format, use it. If it does not, a well-structured PDF is generally fine on modern systems.

  • Use standard section headings: Experience, Education, Skills
  • Avoid tables, text boxes, columns and graphics
  • Use a common font at 10 to 12 points
  • Save as PDF or DOCX depending on what the form accepts
  • Keep your contact details in the main body, not in a header or footer

Does the ATS automatically reject your application?

This is the most common myth, and it is mostly wrong. The vast majority of ATS do not auto-reject based on a keyword score. What they do is rank or sort candidates so recruiters can start at the top of the list. A recruiter still decides who moves forward.

True automatic rejection is rare and usually tied to knockout questions, not keyword matching. A knockout question might ask 'Do you have the right to work in the US?' or 'Do you have a current CPA licence?' If you answer no to a required question, the system may mark you as disqualified before a human sees your resume. That is a deliberate business rule set by the employer, not an algorithm scanning for buzzwords.

Ranking does matter, though. If a recruiter opens a list of 200 candidates sorted by relevance score and only reviews the top 50, being ranked 180th has the same practical effect as rejection. So optimising your resume for clarity and relevance is still worth doing, even if the ATS is not literally deleting your file.

How recruiters actually search and rank candidates

Recruiters use the ATS search bar the same way you use a search engine. They type a skill, a job title or a certification and the system returns candidates whose parsed resume contains that text. If your resume says 'Python development' but the recruiter searches for 'Python developer', a good parser will still match you. But if your resume never mentions Python at all, you will not appear.

Some ATS also generate a relevance score by comparing your resume text to the job description text. This is not a sophisticated AI judgment about your suitability. It is closer to a word-frequency comparison. The practical implication is that your resume should use the same terminology the job posting uses, not synonyms you prefer.

In the UK and Australia, many employers use systems like Workday or SmartRecruiters. In Canada, Greenhouse and Lever are common in tech. The underlying logic is the same across all of them: structured storage, keyword search, stage-based pipelines.

  • Use the exact job titles and skill names from the posting
  • Spell out acronyms at least once, for example 'Search Engine Optimisation (SEO)'
  • Include certifications by their full name and abbreviation
  • Mirror the language of the job description without copying it word for word

What the ATS does not see

The ATS does not evaluate your personality, your portfolio links (unless a human clicks them), your LinkedIn activity or your references at the application stage. It stores what you submit and nothing more.

Cover letters are stored but often not parsed into searchable fields. Some recruiters read them; many do not at the screening stage. Write a cover letter because it can help when a human does read it, not because it will improve your ATS ranking.

One thing the ATS does record is your answers to application form questions. These are stored as structured data and are often more searchable than your resume text. Answer every question fully and use relevant terms, because a recruiter may filter by those answers.

How Break-In Bad helps you get through ATS screening

Break-In Bad reads the full job posting, including location, visa requirements, time zone and seniority level, before deciding whether to apply. Jobs scoring 75 to 100 percent match are submitted automatically. Jobs scoring 45 to 74 percent are flagged for your review. Jobs below 45 percent are held back with a suggestion to improve your profile first.

When you apply, Omar writes a tailored resume and cover letter for each job using facts you have confirmed, so the language in your resume reflects the language in the posting. Applications go directly into Greenhouse, Lever, Workday and other employer sites, and you get a screenshot as proof of submission. Employer replies come into one inbox with interview alerts, so you do not miss a response sitting in a system you forgot you applied through.

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Questions people also ask

Do all employers use an ATS?

Most companies with more than around 50 employees use some form of ATS. Very small businesses and some startups may still manage applications by email. If you apply through a company careers page or a job board link, there is almost certainly an ATS behind the form.

Can an ATS read a PDF resume?

Most modern ATS can parse a PDF resume accurately as long as the PDF contains selectable text rather than a scanned image. If you created your resume in Word or Google Docs and exported it as PDF, it will generally parse correctly. Avoid PDFs that are images of text.

How long do companies keep applications in their ATS?

Retention periods vary by employer and by law. In the US, federal contractors are required to keep applicant records for at least two years. Many companies keep all applications for one to three years regardless of outcome, which is why you may receive outreach about a role long after you applied.