What is an Applicant Tracking System (ATS)?

The 2025 Guide for Job Seekers and Recruiters

Category: Career Technology | By FinezCV Blog
Build Your ATS-Optimized Resume → FinezCV.com

Introduction: ATS Affects Everyone — Not Just Candidates

Whether you’re applying for jobs or hiring for them, the Applicant Tracking System (ATS) is one of the most important tools in modern recruitment.

For job seekers, the ATS can be the invisible wall between you and your dream job.
For recruiters, it’s the system that helps filter hundreds (sometimes thousands) of resumes to find the best match, fast.

In this guide, you’ll learn:

What ATS is and how it works
How job seekers can optimize their resumes
How recruiters can improve hiring with ATS
Tools, best practices, and resume checkers
The best ATS platforms used globally

What Exactly is an ATS?

An Applicant Tracking System (ATS) is software used by employers to manage job applications digitally.

It:

Collects and stores resumes
Parses them into structured data
Filters, ranks, and shortlists candidates based on keywords and job criteria

It’s the digital gatekeeper between applicants and hiring teams.

Why ATS Matters

To Job Seekers:
It determines whether your CV is ever seen by a human.

To Recruiters:
It speeds up the hiring process, improves accuracy, and enables smarter decision-making.

ATS isn’t just about automation. It’s about better alignment between skills and roles.

How ATS Works (For Both Sides)

Job Seekers: What Happens When You Apply

You submit your resume via a job portal
ATS scans and parses your document
It searches for keywords, titles, and certifications
It ranks you based on relevance to the job post
Recruiters see a short list of top matches

If your resume lacks proper formatting or keywords, it might be disqualified without a second look.

Recruiters: How It Streamlines Hiring

Post a job → Set filters and keywords
ATS auto-ranks applications
High-potential candidates are flagged
Non-matching ones are filtered out
Recruiters can sort, tag, comment, and contact from one platform

ATS helps recruiters move faster, especially when hiring at scale.

Common Mistakes That Break ATS

Mistake	Why It Hurts
Using tables or images	ATS may not read them properly
PDF with unusual formatting	Some systems can’t parse certain PDF layers
Non-standard section titles	“My Journey” ≠ “Work Experience”
Missing keywords	Low match score, low rank
Keyword stuffing	Looks unnatural to both bots and humans

Frequently Asked ATS Questions

Can ATS Read PDF Resumes?

Yes and no.
Modern systems can, but some older ATS tools still struggle, especially with multi-column layouts or image-based PDFs.

Best Practice: Submit your resume as a .docx file unless a PDF is specifically requested.

How Do I Know If My Resume Is ATS-Friendly?

Ask yourself:

Are my headings standard (e.g., Work Experience, Skills)?
Is the file format editable (.docx)?
Are keywords used from the job description?
Are there tables, icons, or complex design elements?

Still unsure? Try an ATS checker (below).

What Is an ATS Resume Checker?

An ATS checker tests how well your resume will perform when scanned by a tracking system.

Popular tools:

All give you:

Keyword match percentage
Formatting suggestions
ATS readability scores

Tips for Writing ATS-Friendly Resumes

For job seekers:

Use a clean layout with left-aligned, standard sections
Match the keywords used in the job listing
Start bullet points with action verbs
Quantify your achievements: “Increased sales by 25%”
Save in .docx unless otherwise requested

Use a FinezCV template designed for ATS success

Best Applicant Tracking Systems for Recruiters in 2025

If you’re hiring talent, selecting the right ATS can significantly enhance your workflow.

Here are the top-rated ATS platforms used worldwide:

1. Greenhouse

Best for: Structured, mid-size to enterprise hiring
Collaborative workflows, reporting, and interview planning

2. Workday Recruiting

Best for: Large enterprises
Built-in HR, finance, payroll, and global compliance

3. Lever

Best for: High-growth teams
CRM + ATS in one with strong sourcing tools

4. Zoho Recruit

Best for: Startups, agencies
Budget-friendly with automation, AI screening, and integrations

5. SmartRecruiters

Best for: Global hiring
Multi-language support, analytics, and job board integration

6. BambooHR (ATS add-on)

Best for: SMBs using Bamboo for HR
Great UI with strong onboarding and performance tools

7. iCIMS Talent Cloud

Best for: Enterprise teams
Full recruitment marketing suite, compliance tools, and advanced filters

Final Advice for Both Sides

Job Seekers	Recruiters
Use .docx format, clean layout	Write clear, keyword-rich job descriptions
Match keywords naturally	Don’t over-filter and miss strong candidates
Use ATS checker tools	Review top matches manually
Avoid tables, images, or columns	Track conversion data from job boards
Focus on skills, not just duties	Use ATS analytics to improve sourcing

Conclusion: ATS Is Not the Enemy — It’s the Opportunity