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ATS & Keywords

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What Is an ATS? How Resume Screening Actually Works

By AI Resume Craft Team · Published 8 August 2026

If you've heard that you need an "ATS-friendly resume" but aren't sure what that actually means, you're not alone — a lot of the advice online is vague or overstated. Here's what an ATS actually does, and what it means for how you write your resume.

What an ATS Actually Is

An applicant tracking system (ATS) is software that employers use to manage the recruitment process — collecting applications, storing candidate information, and helping recruiters search, sort, and filter through resumes. Common platforms used in Australia include Workday, SAP SuccessFactors, iCIMS, and Taleo, among many others, particularly at medium-to-large employers and government agencies.

Contrary to some of the more dramatic claims online, an ATS isn't usually a single all-or-nothing gatekeeper that automatically rejects candidates on its own. It's more accurate to think of it as the system a recruiter uses to manage a large volume of applications — but how well your resume is parsed by that system still directly affects whether a recruiter sees an accurate, complete version of your information.

How ATS Resume Screening Actually Works

Parsing. When you submit a resume, the ATS extracts (or "parses") the text into structured fields — name, contact details, work history, education, skills — so recruiters can search and filter candidates. This is the step where formatting problems cause the most damage: complex layouts, tables, and text boxes can cause information to be misread, misplaced, or dropped entirely.

Keyword search and filtering. Recruiters often search the ATS database using keywords related to the role — specific skills, job titles, or qualifications. A resume that doesn't include the terminology a recruiter searches for may not surface in results, even if you genuinely have the relevant experience, simply because it's described using different words.

Ranking or scoring (in some systems). Some ATS platforms include a scoring or ranking feature that compares a resume against a job description's requirements. Not every employer uses this feature, but where it is used, keyword alignment between your resume and the job ad becomes more directly important.

Human review. Ultimately, a recruiter or hiring manager still reviews shortlisted resumes — the ATS shapes what they see and how easily they can find you, but it doesn't remove the human decision-making step entirely.

What This Means for How You Write Your Resume

Use a clean, single-column layout. This is the single biggest formatting factor — multi-column layouts, especially ones with skills or dates in a side column, are a common cause of parsing errors. See our full ATS-friendly resume checklist for the complete list.

Use standard section headings. "Work Experience," "Education," and "Skills" parse reliably; creative alternatives like "My Journey" or "What I Bring" may not be recognised correctly by every system.

Match the language of the job ad where it's genuinely accurate. If a job ad asks for "stakeholder management" and that's what you've done, use that exact phrase rather than a synonym — see our guide on finding the right resume keywords for how to do this properly.

Avoid text inside images, headers, or footers. Some ATS platforms skip these areas entirely, meaning any content placed there — including contact details — may not be captured.

The Bigger Picture

ATS optimisation matters, but it's a floor, not a strategy — a perfectly ATS-parsed resume with weak, generic content still won't get you an interview. Think of ATS-friendly formatting as removing an unnecessary obstacle so your actual experience and achievements get a fair chance to be read, rather than as a trick that replaces strong content.

Getting Started

Every template in our AI resume builder is built on ATS-safe formatting by default, so you can focus on the content rather than worrying about layout choices that might cause parsing problems. See our ATS-friendly resume checklist for a detailed, practical rundown.

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FAQs

Most medium and large employers do, along with many recruitment agencies and government agencies. Smaller businesses hiring directly are less likely to use one, though the trend is toward wider adoption across company sizes.

It depends on the system and how the employer has configured it — some ATS platforms are used purely for sorting and searching, while others allow automatic filtering based on keyword matches or specific criteria. Either way, formatting that an ATS can't parse correctly reduces your chances regardless of the exact configuration.