ATS Goblin Myths Unveiled 👹: What Job Seekers Should Know About The Applicant Tracking System

Let’s start with the basics, what exactly is an ATS?

Sylvanna: ATS stands for Applicant Tracking System. This software is used by recruiters to help us manage candidates, sort resumes, and track candidates through the hiring stages. Simple as that!

As a recruiter who has been using two major ATS systems (like Workday and iCIMS) over the last 10 years, there are so many rumors surrounding the ATS system that I could write a whole Netflix drama about it.

Brent: Think of ATS as a digital filing system, not a hiring machine. It keeps candidates organized, tracks communication, and helps recruiters find the best matches faster - but at the end of the day, hiring decisions are made by humans.

Clifton: ATS is a Tool, Not a Hiring Barrier – The real challenge lies in how recruiters and hiring teams use the ATS. Poorly optimized or outdated systems can create hiring inefficiencies and a frustrating candidate experience—which can also reflect how much a company invests in talent within.

“Is it true that an ATS can’t read PDF/Word docs?”

Alex: Most ATS can parse resume information if it comes from either a PDF or Word doc. However, that might be challenging if there are graphics, stylized images, or weird formatting. Remember, keep it simple and keep it relevant.

“What about AI?”

Alex: There has been a surge of interest and product adoption to integrate AI with more ATS’ under the guise of streamlining resume reviews, eliminating bias, and improving candidate experience. However, AI integrations with existing ATS’ are nowhere near the degree of sophistication that people perceive it to be at. Additionally, most folks in TA are reticent about the effectiveness of such tools. AI is more of a feature for ATS’ vs a means of truly assessing candidates skills.

“Did AI reject my resume because I didn’t have the right keywords?”

Sylvanna: The truth is, an ATS system will not reject your resume because of “missing” keywords. When you submit your resume, it’s saved under your profile, and while the system asks you to re-enter the information from your resume, it’s simply to structure the data into a standardized format. The system “parses” your resume into data fields, and you have the chance to review it before submitting.

This is just the way the system operates. A recruiter can still search for your name in the database and open the resume you manually uploaded.

Alex: One of the most PREVALENT myths I still see is the idea that your resume needs to be optimized to “pass” the ATS. As if the right combo of the right words might unlock job opportunities if only you knew how. And here’s the thing, the people who talk MOST about this are typically the ones trying to sell you a service. 

Now, most ATS’s do allow users to use a keyword search. Again, it is a database so we can use booleans to search through previous applicants. And depending on the maturation of the ATS, this should be a recruiting or TA teams FIRST stop prior to opening up the requisition to job boards or public posting. AND it is probably one of the most underutilized practices in talent orgs. Which means, that as a candidate, you should focus less on if you have the right “keywords” and more on if you have the right experience. 

Don’t try to squish a bunch of keywords or jargon that lack relevance into your resume. Don’t “whitefont” your resume. There is a big difference between:

“Executed the end-to-end implementation of an advanced illumination solution, leveraging precision tooling and cross-functional alignment to seamlessly integrate a high-efficiency luminary module into an existing electrical framework, optimizing ambient visibility and enhancing operational continuity.”

AND

“Installed a high-efficiency light bulb, improving visibility and ensuring seamless integration with the existing electrical system for sustained performance.”

Most recruiters can tell the difference.

The most important thing that you can do is ensure that your resume formatting is simple (avoid graphics, tables etc), accurately describes your experience by outlining practical examples and the results you’ve driven in the past, and is easy to read.  

If ATSs worked the way people think they do, I’d be stoked because I’d spend way more time interviewing candidates instead of reviewing resumes. But the reality is, an ATS is just a database. The things people describe, like AI rejecting resumes or keyword optimizations, are add-on features, not the core function of an ATS. And right now, those features lack the nuance and complexity to truly evaluate candidates.

Clifton: Yes Keywords Matter, But Context is Key – Using relevant keywords naturally, as seen in the job description, within your accomplishments is more effective than stuffing them in artificially. Focus on clearly demonstrating your impact.

“I got rejected minutes after applying—it must have been AI!”

Sylvanna: A major reason for an immediate rejection is if you answered "no" to the “knock-out” questions. These questions are used to screen for key criteria, like specific software skills, required degrees, or a certain number of years of experience. The recruiter sets these questions based on the hiring manager's needs, and if you don't meet them, the system will filter you out automatically.

Alex: “Knock-out questions are likely the closest thing to that mythical ATS bot in recruiting right now. Knock out questions are rules based questions used to quickly reject applicants for a job posting if they don't’ hit specific requirements. For example:

“Do you reside in the state of California? Y/N”

If the system is configured to reject people based on if they answer “No” you might receive an automated rejection email shortly after applying. 

“Did anyone look at your resume?”

Maybe. It depends on the company size, the role’s specific needs, and internal TA policies. If you didn’t hit the criteria for the role, there’s a chance no one manually reviewed your application—but that’s exactly what those questions are for. They help filter out candidates who don’t meet the minimum requirements, allowing TA teams to focus on those who do, rather than spending time on applicants who simply aren’t the right fit.

Clifton: ATS Does Not Automatically Reject Resumes Blindly – The system primarily ranks applications, but some companies use knock-out questions to filter out applicants who don’t meet basic requirements—like work authorization or years of experience. Recruiters and hiring managers still make the final decisions.

How AI Works in Resume Screening (And How to Beat It!)

Brent: At my company, we use AI for Resume Screening & Candidate Matching, and here’s why:

Before AI, we were spending hours & days sorting through applications - now, AI helps us rank candidates based on their resume’s alignment with the job description we built. This doesn’t mean AI is making the hire. It just scores candidates on a scale of 0-100% based on keyword matching*, skills, and experience.

So, what does this mean for job seekers?

• Tailor your resume to each role instead of sending the same version everywhere.

• Match your resume language with the job posting—use the same keywords recruiters are searching for.

• Quality over quantity—don’t just mass-apply; focus on jobs where you’re a strong match.

Taking just 20-30 extra minutes to refine your resume can make the difference between getting an interview or getting lost in the mix.

*Have you been told that copying the job description and placing it on your resume in white 1pt. the font was the way to get recruiters to read your resume? Think again, this trips AI from scoring you on how you actually should be scored. Also, we can see it and let’s just say…that’s not the best first impression…😅

Clifton: You Don’t Need to Meet 100% of Qualifications – Even if you meet 60-70% of the job requirements, you should still apply. Recruiters prioritize transferable skills, potential, and overall fit rather than just a rigid checklist.

“Why did I get a rejection email at 3 AM?”

Sylvanna: If you receive a rejection email at odd hours (like 3AM), it’s because recruiters often use a delayed email filter. For example, if the recruiter schedules a rejection email to go out two days after the decision, you might get that rejection on a Saturday. It’s all part of the process, so don’t take it personally!

“A recruiter never even saw my resume! What’s up with that?”

Sylvanna: This one is partly true but it's more of a timing issue. More likely than not, the recruiter has reviewed your resume, but the timing of your application plays a big role. Once the applications are in, the recruiter will prioritize the candidates who seem like the best fit and begin scheduling interviews. For example, if 100 applicants apply over the course of a few days, the first qualified 10 to 20 applicants may already be contacted for interviews. Meanwhile, the recruiter will be moving on to another job requisition they’re handling at the same time.

Brent: As a leader in talent acquisition, I can tell you that recruiters ABSOLUTELY still review resumes—AI just helps us work more efficiently. The last thing any recruiter wants is backlash from a hiring manager for sending over unqualified candidates. AI simply helps us prioritize which resumes to review first, but it doesn’t make the final hiring decision.

If you’ve been applying to jobs under the assumption that your resume is disappearing into the void, think again. Understanding how AI-powered ATS (Applicant Tracking Systems) truly work can give you an edge in your job search.

Key Takeaways: (Brent)

Here’s what you should know as a job seeker:

✅ Recruiters DO read resumes, even if AI is involved.

✅ The ATS DOESN’T automatically disqualify candidates - it just prioritizes which resumes to review first.

✅ Applying early can help - some hiring teams start reviewing applications as soon as they come in.

Bottom line: ATS doesn’t swallow your resume whole. The better you align your resume to the job, the better your chances of getting noticed.

If you’ve been frustrated by the job hunting process, here’s what you can do to work with the system, not against it:

✔ Optimize your resume with clear, job-relevant keywords.

✔ Avoid shortcuts (e.g., hiding keywords in white text—yes, AI can detect this trick!).

✔ Apply strategically—focus on jobs where you meet at least 70-80% of the qualifications. Not everyone is looking for a unicorn. 

AI is here to help recruiters be more efficient, not replace them - so don’t let fear of the system hold you back. If you apply smartly and strategically, you’ll boost your chances of landing interviews. ATS and AI aren’t the enemy - they’re tools that, when understood, can work in your favor. The more you align your resume with job descriptions, apply thoughtfully, and avoid common mistakes, the better positioned you’ll be in today’s job market.

Recruiters are your friends, we want you to get the job! This makes it easier for us, and brings joy to you!💜