An ATS (applicant tracking system) is a computer software program that companies use to screen candidates’ resumes for desired skills and qualifications. Your resume often goes through an ATS before a human ever sees it.
An ATS-friendly resume, by definition, means creating a resume which can easily be read and parsed by an ATS. Clear formatting and relevant keywords that the ATS looks for when screening applicants constitute this type of resume. Based on how well your resume matches the job description, it will be ranked by the ATS. The higher your rank, the more favorable it is that a human recruiter will see it for further consideration.
Non-Ats-Friendly Resumes can either be rejected when applying for a position as the tech might miss some important information or confuse it in its layout. Hence, it is so important to optimize a resume according to ATS if you want to go ahead into the next round of the hiring process.
The ATS software is mainly used to streamline the hiring processes in an organization; it is usually organized as follows:
Organizing, scanning, sorting, and scoring: The software can assist recruiters in managing big volume resumes to arrange and score individual candidates regarding how well their resumes match the jobs description.
Data extraction: ATS can automatically extract from resumes and cover letters the information needed such as skills, qualifications, experience, education, and certificates that help recruiters compare candidates.
Working like an email spam filter: Just like email spam filter scans messages for junk mails, ATS scans resumes to find candidates whose qualifications fit the job description. If a resume contains the right keywords, it is more likely to pass through the system.
Ranking resumes: For the first phase, after the screening by the software, it assigns a score based on relevance. Those resumes having a higher relevance to job requirements will score most and then get passed on to the next review stage.
Matching job descriptions: It mainly focuses to ensure the matching of the resumes on keywords and the job description. More aligned your resume is with the job requirements, the more it has chances to clear the screening.
ATS has been designed to read and process information in a standardized way, so your resume must be structured. Here are some of the most important factors ATS will check when scanning your resume format:
Resume layout: The reverse-chronological format is the most ATS-favorable in its format, since it details the candidates' job history, with the most recent going first and followed by all the previous jobs. This is the one used most often and ATS usually can parse it very well.
File type: Some of the unproblematic file types are generally accepted such as .docx or PDF so it is advisable to stick with that unless specified within the job posting for some other format. Heavy image files should not be used as they will become hard for the ATS to read.
Section headings: "Work Experience," "Skills," "Education," and "Certifications"-standard resume section headings. These terms, and even many more terms, have been programmed into the working of ATS; anything else can leave out important information.
Simple, clear layout: This is what favors ATS-the resume should be in a clean, simple structure. It is advisable to avoid complex templates, tables, graphics, and so on which can generate confusion in the system leading it not be able to scan your information accurately.
Keywords: Keywords are very important according to ATS screening. The software scans your resume and matches terms of the job description. Place those relevant keywords such as skills, certifications, job title, etc. in your resume but be mindful since they can overuse them according to smatterings.
Fonts: Use only Arial, Calibri, or Times New Roman - they're basic, and easy to read. Weird-looking or decorative fonts will confuse ATS and have low readability, so stick to the normal ones for the sake of clarity.
Bullet Points: They are valuable breaks in your achievements and experience that make it easy for ATS and human reads to scan through the document. You must make them plain and simple, since overly complicated phrases confuse ATS.
1. Chronological resume format, (Focuses on your work experience)
2. Functional resume format, (Emphasizes your skills)
3. Combination resume format, (Highlights both your experience and skills)

1. Chronological Resume Format (Work Experience-Oriented) - Most Suitable
This format is best when there are no significant gaps in employment and the career path has been consistent.
It ensures clarity when job history is evaluated by an employer or ATS.
When to use: If you have a consistent work history and are applying to an organization where all of it is highly relevant in line with the job description.
2. Functional Resume Format (Emphasizes Skills)
Whereas the functional format concentrates on skills and capabilities rather than job experience, the real trouble is with parsing by ATS because it doesn't clearly state job titles or dates employed.
When to use: If you are switching fields or have little work history, or if you want to emphasize special capabilities instead of a conventional job history.
3. Combination Resume Format (Highlights Both Experience and Skills)
It is a combination of chronological and functional formats where this type of resume shows similarly work experience and the key skills.
It is best suited for candidates who have a wide range of skills or having frequent changes in their careers. This will be a bit tough read for an ATS so one needs to be very careful displaying this format.
When to use: If you have relevant skills as well as experience gained across different roles or industries or in case you are applying for senior positions.
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