How ATS systems actually work (and how to pass them)

TL;DR

  • ATS systems don’t “reject people”, they rank resumes based on relevance, structure and language.
  • Most resumes fail because they don’t clearly match how jobs are described, not because candidates lack skill.
  • Understanding how ATS software reads and compares resumes gives job seekers a real, practical advantage.

Why so many Australian professionals feel invisible

If you are applying for roles in Australia or New Zealand and hearing nothing back, you are not alone. Many capable professionals submit dozens of applications and receive no response, not even a rejection.

This frustration often has less to do with experience and more to do with how resumes are screened. Most medium to large employers now use Applicant Tracking Systems, or ATS, to manage high application volumes. These systems decide which resumes move forward before a recruiter ever sees them.

Research from Harvard Business School shows that millions of qualified candidates are excluded early in hiring processes due to how automated screening systems operate. Understanding this reality is now part of being job-ready.

What an ATS actually does (step by step)

Despite the myths, ATS software is not artificial intelligence that “judges” people. It is primarily a matching and ranking system.

How ATS systems actually work, step-by-step visual flow.

Specifically, an ATS does four things:

  1. Parses your resume: The system reads your document and extracts information such as job titles, dates, skills and qualifications. Complex layouts, tables, or graphics can prevent correct parsing.
  2. Identifies keywords and phrases: The ATS compares your resume language with the job description. If the role mentions “stakeholder management” and your resume only says “client liaison”, the system may not see them as equivalent.
  3. Scores relevance: Resumes are ranked based on how closely they match the role requirements. Recruiters usually review only the highest-ranking applications.
  4. Filters at scale: When hundreds of applications are received, ATS software reduces the pool to a manageable shortlist.

Therefore, resumes that are unclear, generic or poorly structured tend to fall below the review threshold.

Why resumes fail even when candidates are qualified

Harvard Business School’s Hidden Workers report found that 88% of employers believe qualified candidates are filtered out by screening systems before human review.

This happens for several reasons:

  • Job titles don’t match expected wording
  • Achievements are described vaguely rather than clearly
  • Skills are implied but not explicitly stated
  • Resume structure confuses parsing software

According to Debra O’Brien, a senior recruiter with over 15 years’ experience, “Most resumes that fail ATS screening don’t lack experience. They lack clarity. Recruiters can only work with what the system surfaces.”

Debra’s experience reviewing thousands of resumes across Australian and ASX-listed organisations reinforces what the research shows. ATS systems reward precision, not potential.

A brief Australian case example

Consider a project manager applying for roles in Melbourne. Their resume emphasised leadership and delivery but avoided technical language. Job descriptions, however, consistently mentioned terms like “risk register”, “RAID logs” and “Prince2”.

Once the resume was rewritten to reflect the same experience using market-aligned terminology, it began passing ATS screening and led to interviews. The experience never changed. The presentation did.

Where ATS systems are heading next

ATS platforms are evolving, but not in the way many assume. While machine learning is being introduced, the core logic remains matching and ranking.

Emerging trends include:

  • Skills-based screening over job titles
  • Greater weighting on recent experience
  • Automated shortlisting integrated with assessment tools

This means resumes will increasingly be evaluated on how clearly skills and outcomes are expressed, not on narrative flair.

How job seekers can realistically pass ATS screening

There is no trick. There is only alignment.

Practical steps include:

  • Use standard headings such as “Experience”, “Skills”, and “Education”
  • Match language used in the job description naturally
  • Focus on outcomes, not just responsibilities
  • Keep formatting simple and readable

Most importantly, treat your resume as a decision document, not a biography.

Final thought

ATS systems are not the enemy. They are the gate.

Once you understand how they work, you stop fighting the process and start working with it. For many professionals, that shift alone is enough to change the trajectory of a job search.

If you want a recruiter’s perspective on how your resume performs against modern screening systems, the ExpertsCentre Resume Upgrade Package is designed to do exactly that.

References

Debra O'Brien
Debra O'Brien
Articles: 6

Related Posts