Dispelling Myths of Applicant Tracking System

Applicant Tracking System or ATS if we want to get jazzy. Are they AI? Does every hiring team use one? Can it read your resume? All these questions and more likely fill your mind whenever someone mentions ATS to you and if you do not work in the talent acquisition field, the answers can be somewhat elusive.

Over the last years I have heard countless times that the ATS system is automatically rejecting resumes, that with the accessibility of AI. That teams are now allowing this to make their hiring screening decisions and frustration is mounting from job seekers.

Frustration that I felt was misplaced.

But that was my single opinion, so to help me and in turn you better understand applicant tracking systems I enlisted the support of Mykhailo Shpygotskyi, Team Lead Global Tech Recruitment at Flix and Alicja Copija, Talent Strategy Lead, two brilliant talent specialists who have seen their fair share of tracking systems and who were well equipped to help answer some ATS myths that were put forward to me by the community.

Myth: Do ATS really “automatically reject” resumes?

According to both Mykhailo and Alicja, Applicant Tracking Systems (ATS) do not automatically reject resumes, at least not in Europe. Mykhailo shared, even if a resume is rejected, “a human is always clicking,” ensuring compliance with legal requirements. Alicja reinforces this, emphasising that EU law mandates human involvement in hiring decisions. So, while ATS AI can streamline the process, your resume isn’t getting automatically discarded by a machine, it’s always reviewed by a person at some point in the process.

Myth: If your resume doesn’t have the right keywords, will it be seen?

Mykhailo explained, some recruiters manually review every single application, whilst others, especially when overwhelmed with hundreds of resumes may use keyword searches to filter candidates. Advanced ATS platforms like Greenhouse allow recruiters to search for specific terms, these terms can be both hard-skills like ‘JavaScript’ but also soft-skills such as ‘Ownership’. As you will not know which type of recruiter will be reviewing your resume, keyword optimisation is important to ensure you boost your chances of being seen.

Alicja adds that modern ATS AI can rank resumes based on relevance using a percentage score, which recruiters can use as a filtering tool. However, this is not always set-up, if not, without the right keywords, your resume may require more effort for a recruiter to understand what you do and why you applied. Additionally, and very interesting to know, some companies cap the number of applications per role, meaning applying early can increase your chances of being seen before the system limits new submissions.

Myth: They cannot read image file resumes?

Mykhailo highlighted that while some Applicant Tracking Systems might be able to read image-based resumes but it's much safer to use formats like PDF or Word. These formats ensure the system can accurately extract and match text to relevant filters. He also advises considering whether a fancy layout even adds value to your resume.

Alicja also shared that many systems attempt to scan and convert image resumes into text, but this process can result in errors, such as symbols or unreadable versions. Furthermore, if the ATS employs AI and struggles to interpret the document, it might assign a low or even 0% relevance score for keywords significantly affecting your chances.

For consistency and maximum visibility, sticking to text-based formats is highly recommended.

Myth: ATS require no human touch post resume review

We are not yet at a point where an ATS can operate entirely without human involvement after the resume review stage. Recruitment remains a people-focused industry, and while AI can help streamline repetitive tasks like scheduling, suitability of candidates still requires human judgment. Mykhailo also points out the risks associated with AI systems learning from potentially biased data, which could lead to discrimination based on incorrect past decisions.

Alicja also believes firmly that the claims that it is all AI led is untrue, as recruiters play a crucial role in reviewing resumes and categorising candidates for shortlisting. This process may be done manually or through coordination, but human oversight remains essential to ensure fairness and accuracy in hiring decisions.

Myth: Applying to multiple jobs in the same company doesn’t matter

Mykhailo and Alicja both agree that applying to multiple jobs within the same company can be a double-edged sword and requires a balanced approach. Mykhailo advises that it’s fine to apply to a couple of positions if you’re genuinely torn between roles, such as deciding between a Lead or Senior position. However, he warns against overdoing it, as submitting too many applications could come across as spammy and leave a negative impression. He also added that your application history may be flagged on your internal record, which, although data is typically only retained for six months, could still leave recruiters with a lingering memory of your approach.

Alicja suggests that if you see a potential fit for another role within the same organisation, a well-crafted cover letter can help explain your reasoning and showcase why both could be of interest. She notes that ATS systems often track and reveal the other roles you’ve applied for, and in some cases, they might even put you into parallel processes, which could cause complications. Flooding a company with 20 applications, she warns, could make you appear disorganised rather than strategic.

What role does an ATS play in the hiring process

Okay taking a step back from the myths, what does an ATS actually do? In a modern hiring process, it does play a crucial role for recruitment teams, acting as a central hub for all hiring-related activities. Mykhailo explains that an ATS primarily serves as a storage system for recruitment data, allowing recruiters to track and understand the current status of each applicant. It also helps facilitate the collection of feedback from interviews or tasks, ensuring that all relevant information is readily accessible throughout the hiring process.

Alicja expands on this by highlighting that an ATS is often integrated with other tools, such as CRM systems and Human Resources Information Systems, making it a key component of a broader HR ecosystem. This integration can extend its utility beyond hiring, supporting an employee's journey within the company.

To you and me, outside of the data tracking element it is in a nutshell a "glorified Excel sheet" due to its fundamental function, but its capabilities go far beyond that simplicity.

It is not there to reject you from a process.

How optimise your resumes without overthinking it

Myths done, ATS understanding done now it’s time to explore resume optimisation. This is not a way to ‘beat’ the ATS, as we have shown already with the support of Mykhailo and Alicja there is nothing to beat, but this is rather a way to give yourself the best opportunity to be seen. Then it is down to your resume to convince the recruiter to proceed further.

Mykhailo stresses the importance of tailoring your resume to the specific job, highlighting core skills, measurable achievements, and data-backed outcomes. By focusing on initiatives and results rather than just responsibilities, your resume can clearly convey the impact, scale, and exposure of your work. He also suggests emphasising your most recent roles and keeping the content concise and easy to understand, as your resume might be reviewed by people from diverse backgrounds who might not speak your native language.

Alicja adds that clarity is key, suggesting that resumes should ideally be 1-2 pages long to make them manageable for recruiters, given the average time spent reviewing each one. Utilise traditional formats like PDF or Word files with space for links to your portfolio or LinkedIn if you feel additional content can be added.

Both expressed the importance of avoiding generic descriptions and instead suggested that your resume should focus on concrete details that allow recruiters to understand the value and impact you bring.

One final tip and this is specific to the ATS, Alicja suggests that given the competitive job market, a brief, thoughtful message to the hiring team can make a difference. Most applicant tracking systems will have a text box that the hiring team will be able to see alongside your resume, this is where you can easily bridge the gap and personalises your application, making it stand out.

Applicant Tracking Systems are evolving and the usage of AI increasing but in Europe specifically AI is not taking over the process of screening your resume. Now this might differ in other locations and don’t worry we are already in research mode here to confirm or deny but for those that read our blog (link to the main blog) we hope with the support of Mykhailo and Alicja we have offered a glimpse into what the ATS really does within a hiring process and how you can better optimise your chances to secure that first round interview.

If you feel you could do with more personable support around resume optimisation, reach out to one of our Career Coaches - Peritus Academy | Peritus Partners

Peritus Partners is a next generation recruitment team that focuses on blending education, business and community together. Interested to see how we can help find the best talent for your team or interested in finding a new job? Reach out today 😎