how ats systems read and rank resumes

Introduction
When you upload your CV to a job board, an ATS (Applicant Tracking System) is the first gatekeeper. Understanding how ATS systems read and rank resumes can turn a rejected application into an interview invitation. This guide breaks down the technology, the ranking criteria, and actionable steps you can take today—plus how Resumly’s AI tools automate the process.

What is an ATS and Why It Matters

An ATS is software that stores, parses, and ranks candidate information. Recruiters use it to filter thousands of applications quickly. According to a 2023 Jobscan study, 75% of resumes are rejected before a human ever sees them【https://www.jobscan.co/blog/ats-statistics】. If your resume isn’t ATS‑friendly, it never gets a chance.

How ATS Parses a Resume – Step‑by‑Step

1. Ingestion – The system receives your file (PDF, DOCX, or plain text).
2. Text Extraction – OCR or native parsers pull raw text, stripping out images and complex layouts.
3. Section Identification – Headings like Work Experience, Education, and Skills are detected.
4. Keyword Mapping – The ATS matches words against the job description’s required terms.
5. Scoring & Ranking – Each candidate receives a numeric score based on relevance, seniority, and other factors.

Text Extraction and Formatting

ATS engines favor simple, machine‑readable formats. Fancy columns, tables, or graphics can cause text loss. For example, a PDF with a two‑column layout may be read top‑to‑bottom, merging unrelated sections.

Keyword Matching and Scoring

The core of ranking is keyword relevance. If a job posting lists “project management” and your resume only says “managed projects,” the ATS may still recognize the synonym, but exact matches score higher. Studies show that candidates who mirror 70% of the job description’s keywords see a 20% increase in ATS ranking【https://www.candidatezip.com/keyword-study】.

Section Headings and Hierarchy

Standard headings—Professional Summary, Work Experience, Education, Skills—help the parser place information correctly. Unusual headings like “Career Highlights” can be ignored, lowering your score.

Common Ranking Factors Used by ATS

Keyword Relevance

• Exact match vs. synonym match
• Frequency (but avoid keyword stuffing)

Job Title Alignment

If the posting requests “Digital Marketing Manager” and your current title is “Marketing Specialist,” include the exact phrase somewhere in the resume.

Skills and Experience Alignment

ATS often cross‑checks required skills with your listed competencies. Use bullet points that start with the skill name, e.g., “SEO: Optimized 50+ webpages…”.

Formatting and Readability

• Use standard fonts (Arial, Calibri, Times New Roman).
• Avoid headers/footers for critical info.
• Keep line spacing consistent.

Do’s and Don’ts for ATS‑Friendly Resumes

Do

• Use plain text or simple Word templates.
• Include exact keywords from the job description.
• List hard skills first, then soft skills.

Don’t

• Insert images, logos, or charts.
• Use tables for core content.
• Overload with all caps or excessive punctuation.

Checklist: Optimize Your Resume for ATS

• Save as .docx or PDF (text‑based).
• Use standard headings (Professional Summary, Work Experience, Education, Skills).
• Mirror at least 70% of the job description’s keywords.
• Include exact job titles where applicable.
• Keep fonts 11‑12 pt, black color.
• Remove graphics, photos, and tables.
• Add a skills section with bullet points.
• Proofread for spelling; ATS may misinterpret typos.

Real‑World Example: Before and After an ATS Optimization

Before (original upload):

John Doe
Senior Engineer | [email protected]

Experience

• Led a team of developers.
• Improved system performance.

Skills – Java, Python, Leadership.

After (Resumly AI‑optimized):

John Doe
Senior Software Engineer | [email protected] | (555) 123‑4567

Professional Summary
Results‑driven Senior Software Engineer with 8+ years of experience in Java, Python, and Agile development. Proven track record of reducing system latency by 30%.

Work Experience
Senior Software Engineer, TechCorp – Jan 2019 – Present

• Designed and implemented micro‑services using Java 11, improving API response time by 30%.
• Managed a cross‑functional team of 5 engineers, delivering 3 major releases on schedule.

Skills

• Java, Python, Microservices, Docker, Kubernetes, Agile, Team Leadership.

The after version uses exact keywords (“Senior Software Engineer”, “Java”, “Agile”) and a clean layout, boosting its ATS score dramatically.

How Resumly’s AI Tools Help You Beat the ATS

Resumly’s AI Resume Builder automatically extracts the right keywords from any job posting and inserts them into a clean, ATS‑compatible template. Pair it with the Auto‑Apply feature to submit optimized resumes directly to job boards, and the Application Tracker keeps you aware of each submission’s status. Learn more at the AI Resume Builder page and explore the Auto‑Apply feature.

Additionally, the Job Search tool surfaces positions that match your optimized profile, while the Interview Practice module prepares you for the next step after the ATS has done its job. See the full suite of features on the Resumly website.

Frequently Asked Questions

1. Do ATS systems read PDFs?
Yes, but only text‑based PDFs. Scanned images need OCR, which many ATS cannot process reliably.

2. How many keywords should I include?
Aim for 70‑80% of the keywords from the posting. Too many can look like keyword stuffing and hurt readability.

3. Can I use a creative design if I’m in a design field?
Some ATS have advanced parsing, but it’s safer to submit a plain version for the initial screening and attach a portfolio link separately.

4. Does the order of sections matter?
Place Work Experience and Skills near the top; recruiters and ATS prioritize these sections.

5. How often should I update my resume for ATS?
Whenever you apply for a new role, tweak the keywords to match that specific posting. Resumly’s AI can do this in seconds.

6. Are there free ATS checkers?
Yes, tools like Jobscan offer limited scans. Resumly provides a comprehensive, AI‑driven analysis with a free trial.

7. Will using a Chrome extension affect ATS parsing?
The Resumly Chrome Extension simply fills forms; it does not alter the resume file, so ATS compatibility remains unchanged.

Conclusion: Mastering How ATS Systems Read and Rank Resumes

By understanding how ATS systems read and rank resumes, you can craft a document that passes the algorithmic gatekeeper and lands on a recruiter’s desk. Use plain formatting, mirror job‑specific keywords, and leverage Resumly’s AI‑powered tools to automate optimization, auto‑apply, and tracking. The result? Higher visibility, more interviews, and a smoother path to your next career move.

Ready to transform your resume? Try Resumly’s AI Resume Builder today and let the algorithm work for you.