Hidden dangers of ATS: Learn from a real-life HR mistake to improve your hiring process

The job market today is more competitive than ever and we know the reliance on technology is becoming more pronounced with every passing day. With over 97 per cent of Fortune 500 companies utilising applicant tracking systems (ATS) to streamline their hiring processes, the importance of understanding these systems cannot be overstated. 

Unfortunately, many job seekers remain unaware that their meticulously crafted resumes could be rejected by an algorithm without ever reaching the eyes of a hiring manager—despite being fully qualified for the role.

On such incident happened due to a flawed ATS (Applicant Tracking System) that led to the rejection of all candidates for a tech position, shedding light on the importance of ATS literacy for both job seekers and hiring managers. 

Here’s what happened… 

A manager in the tech industry recently shared a shocking experience on Reddit that highlighted the absurdity of reliance on ATS technology. After three months of searching for qualified developers, the HR department reported that not a single candidate had been found suitable for the position. Frustrated, the manager decided to investigate the ATS process further.

Under the guise of a fake email and modified resume, the manager submitted an application and was met with an immediate auto-rejection—despite being the hiring manager for the role. The manager shared this experience in a Reddit comment, revealing that both the application confirmation and rejection emails arrived within seconds of each other. Clearly, the ATS was not functioning as intended.

As it turned out, the ATS was set up incorrectly, leading to the auto-rejection of all applicants. A typographical error caused the system to search for candidates with expertise in "AngularJS," a framework discontinued in 2010. The company was actually seeking developers skilled in "Angular," a completely different technology. Consequently, all applications that did not contain "AngularJS" were automatically filtered out, resulting in an absurd situation where qualified candidates were lost due to a simple error.

The consequences were severe; following this revelation, the manager noted that half of the HR department was terminated for failing to address the issue promptly. This incident serves as a cautionary tale about the potential pitfalls of relying solely on ATS technology without proper oversight.

So, what is ATS and how does it functions? 

An applicant tracking system is software that human resource departments use to manage the influx of applications for job openings. ATS software enables employers to filter resumes based on keywords, allowing them to identify the most suitable candidates. The implications for job seekers are significant; crafting a resume that aligns with the keywords and formatting required by the ATS is crucial for passing the initial screening.

To navigate the complexities of the ATS landscape, it’s essential to understand how these systems operate. Here’s a closer look at the typical process:

• Submission and knockout questions: When a candidate submits their application, it first enters the ATS database. Some systems include knockout questions that can automatically filter candidates based on their responses.
• Resume parsing: The ATS scans resumes and parses the information into a structured format for storage in the database. This step is critical for enabling recruiters to conduct keyword searches later.
• Keyword searches: Hiring managers search the ATS database using keywords relevant to the job. Resumes that do not contain the specified keywords are unlikely to be seen by a hiring manager.
• Filtering process: The ATS identifies candidates who meet the predefined criteria and forwards their applications for manual review. Those who fail to meet the requirements are left in the digital ether, unseen.

Given this process, it’s crucial for job seekers to tailor their resumes with relevant keywords and maintain an ATS-friendly format.

How to avoid ATS pitfalls: A guide 

To ensure our applicant tracking system (ATS) effectively serves your hiring process, it’s essential to recognise and mitigate potential pitfalls. Here are key strategies to enhance the functionality of your ATS:

1. Keyword optimisation: When drafting job descriptions, carefully analyse and incorporate specific keywords relevant to the role. This practice will help candidates align their resumes and cover letters more closely with our requirements, improving the overall quality of applications we receive.
2. Use ATS-friendly formatting: It’s vital to communicate clear formatting guidelines in our job postings. By encouraging candidates to use simple layouts, standard fonts, and common section headings like “Work Experience” and “Education,” you can ensure that their submissions are easily interpreted by our ATS.
3. Encourage tailored applications: Communicate the importance of customising resumes to applicants. By inviting candidates to highlight experiences and skills that match your specific job requirements, you can receive more relevant applications that meet your expectations.
4. Check for errors: Remind candidates to proofread their materials for typos and formatting inconsistencies. Minor errors can lead to automatic rejections, so encouraging attention to detail will benefit both parties in the hiring process.
5. Promote job boards and networking: While submitting applications through ATS is necessary, one should also encourage candidates to leverage networking opportunities, such as connecting on platforms like LinkedIn. By engaging with industry professionals, candidates can increase their visibility and potentially capture our attention even before their applications enter the ATS.

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Upskilling and reskilling your HR team 

Other than being careful, it is also crucial for HR teams to upskill and reskill to effectively utilise applicant tracking systems. A well-trained HR team can prevent issues like the widespread rejection of job candidates due to ATS pitfalls.

• Start by offering comprehensive training sessions that cover the functionalities and best practices of the ATS. This should include understanding how the system parses resumes, how to set up keyword optimisation in job descriptions, and the importance of maintaining ATS-friendly formatting.
• Moreover, encourage HR professionals to stay updated on the latest trends and advancements in recruitment technology. Participating in workshops, webinars, and industry conferences can provide valuable insights into optimising ATS usage.
• Additionally, fostering a culture of continuous learning will empower your HR team to share experiences and troubleshoot challenges collectively. Regular feedback sessions can help identify recurring issues and facilitate knowledge-sharing among team members.