It doesn't matter how well qualified you are. Or how keen you are to take the role. If you're unaware of how ATS systems filter applications, you risk being rejected without any person even looking at your resume or application. It's that serious!
My first post here on applicant tracking systems or ATS attracted a lot of readers and comment. After that, I knew I needed to get more information to share here.
So I turned to the one person I know who probably knows more about this subject than anyone else in the world right now. My friend, Marcia LaReau, the President of Forward Motion US has spent two years testing and evaluating these systems!
Last week I interviewed Marcia to find out as much as I can and I'm pleased to share this information in this post. NB This is a long post...but if you want to go straight to the action points just scroll to the end!
ML: What I’m about to tell you here is based on my experience and information I collected from hundreds of conversations within the hiring communities.
The birth of Applicant Tracking Systems was before the Great Recession in 2008. They came about because available technology filled a need and could be sold to a huge market.
The Applicant Tracking Systems began with the job boards and when I started Forward Motion in 2007, I began by studying Monster and CareerBuilder, which were among the first. CareerBuilder (formerly NetStart) was launched about 1995 and Monster in 1999. Both sites sold subscriptions to companies and posted their job openings. They were able to report demographic information and served as a searchable repository of résumés.
The Great Recession brought a flood of desperate job seekers applying for every possible position. Hiring professionals were overwhelmed and unable to satisfactorily filter all the applicants manually. Although they were in their infancy, the ATS platforms offered a tempting solution, despite their shortcomings.
NP: What type of jobs are ATSs used to screen for? How widespread are they?
ML: ATSs are used for every conceivable kind of position you can imagine. Since a company can own and customize its own system or simply rent a system on a monthly basis, or just pay for candidates who click on their postings, everyone can now use them - from big companies right down to tiny ones. A company does not even need a website; an email address is all that is needed.
For example, if an entrepreneur is looking for a marketing manager or a part-time administrative assistant, s/he can easily use a system to find the right help at a reasonable price.
Two years ago, I spoke at the Connecticut Library Association Conference on the topic, “The Library as Employment Center". The librarians bemoaned that local supermarket chains and even small businesses sent job seekers to the library to “apply online” for jobs such as stocking the shelves and unloading the trucks. Sadly, some of these individuals did not have any basic computer skills and had not even used email.
NP: What should job seekers do to avoid being eliminated?
ML: That’s the right question as well Neil. The Forward Motion Differentiation Workshop was designed in 2009 and has undergone 17 major upgrades and over 32 minor versions. I say this to make the point that as the hiring processes change, so must the jobseeker understand the phases of elimination in the ATS (usually 4 or 5) and adjust his or her cover letter and resume to fit with this.
It’s important to remember that once a candidate gets through the ATS screening, there are seven or eight more steps to get an offer. They have to appeal to HR first and then make it all the way through to the final approver. The ATS is step one. If we isolate that one step, then I offer the following suggestions:
1. Carefully vet the job posting and the company and apply only for those positions that are truly a good fit.
2. Narrow the information on both cover letter and résumé to address the skills, knowledge and abilities specific to the position. Customize accordingly.
3. Don’t assume that software can make a leap of understanding regarding experience. For example, if the job posting is for an Event Planner and asks for “project management” experience. If the résumé only addresses “event planning” the ATS won’t be able to translate. That résumé will be kicked out because it does not cite “project management.”
4. Different ATS set-ups have filters that may include a myriad of questions. These are critical. Many jobseekers do not fill out demographic information about themselves. Yet, with the AAP compliance, they may be eliminating themselves.
5. There should be ample demonstration of the needed skills, knowledge, and abilities in your résumé. These should come under the bullets in the Work Experience section.
6. Use Times New Roman font. Nothing smaller than 11pt. Despite the on-going concern over tables and bullets: they work just fine because the ATS is reading text strings.
7. If, after carefully entering your information into an ATS, you receive a link that takes you to another ATS and asks you to do it all over again…be encouraged! You've been invited to the “inner sanctum” of the company.
I believe the ATS is here to stay and it’s going to get better and better. As we look to new ways of finding the right people who can genuinely contribute to their employer’s success, it is only going to get better. I’m excited about it and looking forward to continuing to be a bridge between the job seeker and hiring communities.
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| Marcia LaReau Phd. |
NP: Why did ATSs come into being?
ML: What I’m about to tell you here is based on my experience and information I collected from hundreds of conversations within the hiring communities.
The birth of Applicant Tracking Systems was before the Great Recession in 2008. They came about because available technology filled a need and could be sold to a huge market.
The Applicant Tracking Systems began with the job boards and when I started Forward Motion in 2007, I began by studying Monster and CareerBuilder, which were among the first. CareerBuilder (formerly NetStart) was launched about 1995 and Monster in 1999. Both sites sold subscriptions to companies and posted their job openings. They were able to report demographic information and served as a searchable repository of résumés.
The Great Recession brought a flood of desperate job seekers applying for every possible position. Hiring professionals were overwhelmed and unable to satisfactorily filter all the applicants manually. Although they were in their infancy, the ATS platforms offered a tempting solution, despite their shortcomings.
NP: What type of jobs are ATSs used to screen for? How widespread are they?
ML: ATSs are used for every conceivable kind of position you can imagine. Since a company can own and customize its own system or simply rent a system on a monthly basis, or just pay for candidates who click on their postings, everyone can now use them - from big companies right down to tiny ones. A company does not even need a website; an email address is all that is needed.
For example, if an entrepreneur is looking for a marketing manager or a part-time administrative assistant, s/he can easily use a system to find the right help at a reasonable price.
Two years ago, I spoke at the Connecticut Library Association Conference on the topic, “The Library as Employment Center". The librarians bemoaned that local supermarket chains and even small businesses sent job seekers to the library to “apply online” for jobs such as stocking the shelves and unloading the trucks. Sadly, some of these individuals did not have any basic computer skills and had not even used email.
What hope would such a person have of getting through an ATS system?
NP: How did applicants respond to the use of ATS?
ML: With the recession, thousands of people began applying for jobs. HR was overwhelmed with the number of applicants and the first real “Tracking Systems” were quickly upgraded to help with the screening process. New job boards were cropping up daily and ATS companies began competing for market share.
This is what I call the first generation of ATSs. I don’t think anyone thought they worked very well.
Job seekers realized that keywords were important and tried beating the system by loading their documents. The problem was that once they “got through” the verbiage was unreadable and many were quickly eliminated. Some companies were so overwhelmed that they actually outsourced the résumé review process overseas - which didn't work either.
NP: You've tested these systems extensively Marcia - how did you carry out the tests?
ML: Since I had been in HR prior to being laid off, I was able to connect with many of my former colleagues and ask them how these systems were being developed. Importantly, they were willing to allow me to test their systems with imaginary candidates.
Over a period of two years, I learned about their hiring process from end to end. With my contacts' permission, I created several imaginary job seekers and started applying for positions at their companies to see if I could get through. I wanted to know what it would take to get a phone call. This way, I was experiencing the systems from the job-seeker side.
At this time, the experience was rather dismal from both sides. I never managed to meet more than 80% of the requirements with my imaginary candidates. Over a period of a year, I developed a system that was able to get through about 65% of the time.
ML: With the recession, thousands of people began applying for jobs. HR was overwhelmed with the number of applicants and the first real “Tracking Systems” were quickly upgraded to help with the screening process. New job boards were cropping up daily and ATS companies began competing for market share.
This is what I call the first generation of ATSs. I don’t think anyone thought they worked very well.
Job seekers realized that keywords were important and tried beating the system by loading their documents. The problem was that once they “got through” the verbiage was unreadable and many were quickly eliminated. Some companies were so overwhelmed that they actually outsourced the résumé review process overseas - which didn't work either.
NP: You've tested these systems extensively Marcia - how did you carry out the tests?
ML: Since I had been in HR prior to being laid off, I was able to connect with many of my former colleagues and ask them how these systems were being developed. Importantly, they were willing to allow me to test their systems with imaginary candidates.
Over a period of two years, I learned about their hiring process from end to end. With my contacts' permission, I created several imaginary job seekers and started applying for positions at their companies to see if I could get through. I wanted to know what it would take to get a phone call. This way, I was experiencing the systems from the job-seeker side.
At this time, the experience was rather dismal from both sides. I never managed to meet more than 80% of the requirements with my imaginary candidates. Over a period of a year, I developed a system that was able to get through about 65% of the time.
NP: Tell me about the second generation of ATS. What changed?
ML: The next generation of ATS came fairly quickly and by 2011, price wars had begun. As of today, it currently costs over $400 to post a job on CareerBuilder or Monster. The aggregate job boards (e.g. Indeed.com and SimplyHired) frequently use Pay-Per-Click (PPC) pricing with charges between $.25 to $1.50 for each click.
These second generation of ATS began using more sophisticated filtering systems. ATS companies began selling directly to large corporations and offered additional customization. (Examples are Brassring, Taleo, HRM, iCims…)
NP: Is it true that the right keywords alone were no longer enough to get a résumé through the system?
ML: Yes. Some companies used a public job board for initial screening and then applied additional criteria and invited select candidates to enter their information into their internal databases. This second generation of ATS was more sophisticated, but the experience on both sides was still less than acceptable.
I might add that the many new cost-effective options allowed even small businesses to use the systems for initial screening. This was far better than their “Craig’s List” attempts at finding candidates.
ML: The next generation of ATS came fairly quickly and by 2011, price wars had begun. As of today, it currently costs over $400 to post a job on CareerBuilder or Monster. The aggregate job boards (e.g. Indeed.com and SimplyHired) frequently use Pay-Per-Click (PPC) pricing with charges between $.25 to $1.50 for each click.
These second generation of ATS began using more sophisticated filtering systems. ATS companies began selling directly to large corporations and offered additional customization. (Examples are Brassring, Taleo, HRM, iCims…)
NP: Is it true that the right keywords alone were no longer enough to get a résumé through the system?
ML: Yes. Some companies used a public job board for initial screening and then applied additional criteria and invited select candidates to enter their information into their internal databases. This second generation of ATS was more sophisticated, but the experience on both sides was still less than acceptable.
I might add that the many new cost-effective options allowed even small businesses to use the systems for initial screening. This was far better than their “Craig’s List” attempts at finding candidates.
NP: What's the current state of play?
ML: We are now embarking on a third generation of ATS. New levels of sophistication have been added all along. At this point, the companies gladly give me a 90-minute review of their “latest and greatest” so I think I’m up-to-date on the functionality. With my help, my clients get through the ATS at least 90% of the time now.
This new generation is certainly the most sophisticated. They typically integrate the whole hiring workflow that includes tracking and compliance with Equal Employment Opportunity Commission (EEOC) as well as the Affirmative Action Plan (AAP). Since AAP is based on demographics and since the demographics are changing with regard to Hispanic and Asian populations in the U.S., these new systems have really taken on new roles. There are other features such as auto-responders and electronic scheduling that saves time and hopefully improves the experience for the job seeker as well.
These latest versions are better able to select qualified candidates, as they are able to read context. This is a double-edged sword for the job seeker though. Getting through to a person now requires a great deal of care. But it isn't rocket-science by any means. It is caring in ways that are meaningful to the hiring process, which begins with the ATS as well.
The articles I read that focus on beating the system and working around it (to get right to the hiring manager) are shortsighted from my perspective. Better, in my opinion, to work with the hiring communities rather than against or around them; especially since we all want the same thing - the right person in the right job.
ML: We are now embarking on a third generation of ATS. New levels of sophistication have been added all along. At this point, the companies gladly give me a 90-minute review of their “latest and greatest” so I think I’m up-to-date on the functionality. With my help, my clients get through the ATS at least 90% of the time now.
This new generation is certainly the most sophisticated. They typically integrate the whole hiring workflow that includes tracking and compliance with Equal Employment Opportunity Commission (EEOC) as well as the Affirmative Action Plan (AAP). Since AAP is based on demographics and since the demographics are changing with regard to Hispanic and Asian populations in the U.S., these new systems have really taken on new roles. There are other features such as auto-responders and electronic scheduling that saves time and hopefully improves the experience for the job seeker as well.
These latest versions are better able to select qualified candidates, as they are able to read context. This is a double-edged sword for the job seeker though. Getting through to a person now requires a great deal of care. But it isn't rocket-science by any means. It is caring in ways that are meaningful to the hiring process, which begins with the ATS as well.
The articles I read that focus on beating the system and working around it (to get right to the hiring manager) are shortsighted from my perspective. Better, in my opinion, to work with the hiring communities rather than against or around them; especially since we all want the same thing - the right person in the right job.
NP: What in your opinion are the biggest shortcomings of ATS systems?
ML: This is an excellent question. Before I answer you, I’d like to give a bit of context.
I believe that we are still coming to grips with the fact that we are now a global economy and we have yet to fully comprehend the impact of the Great Recession. Add to this the technologies that are changing and influencing every area of our lives. I’m referring to Big Data, 3-D Printing, biotechnology, the demise of Moore’s Law, and disruptive innovations. (I’ve put 11 videos on YouTube about this topic.)
Add to this the number of baby-boomers who are retiring in record numbers (now that the stock market has restored some of the value of their retirement) and we can easily see that companies are scrambling. At this time, key concerns include “employee engagement” and succession planning.
So…let’s try to tackle “employee engagement.” We are learning that just because an employee can document that they have the needed skills, knowledge (experience) and abilities (SKA), doesn’t mean s/he will be engaged.
Business models have focused on measuring everything as proof of their success. Examples include Six Sigma, Lean Manufacturing, Balanced Scorecard and many, many others. But how do we measure employee engagement? And how do we devise a filter for it in an Applicant Tracking System?
Now, what about succession planning? With the record number of retirements, companies are losing their knowledge base. Succession planning is a challenge with a smaller Gen X. As we look to Millennials, we are finding a less-than-enthusiastic labor pool when it comes to corporate culture. So this takes us right back to the engagement question.
NP: So you're saying that the problem isn’t really with ATS at all?
ML: How many times do job seekers go through the interview process to find out that they have been eliminated because the position included something that was left off of the posting? Recruiters continually tell me about their frustrations when companies really don’t know what they want (or need) in a position.
The recruiter goes through long lists of candidates and scores of interviews and learns what the company is actually looking for through the process of learning what they don’t want. (The job seeker gets the frustrating response, “The company has decided to go in a different direction for this position.”)
Finally, the internal hiring professionals are enormously frustrated at the number of unqualified candidates. They are also deeply concerned that after careful vetting and attention to their hiring process, they are still hiring the wrong people.
The good news is that their attention to employee engagement is, in my opinion, exactly the right concern!
I have yet to see a job posting that sufficiently addresses this concern. Instead we get verbiage like, “Must be able to work under pressure and meet tight deadlines.” …now isn’t that inviting?
The root of the problem is how we think about the work that the employee will actually do. So the needed change will first require a shift in our thinking. Then we can ask the right questions so we can communicate with jobseekers. This is a whole new dimension about employment. From this point, we can easily manage the ATS questions to address the concerns about engagement.
ML: This is an excellent question. Before I answer you, I’d like to give a bit of context.
I believe that we are still coming to grips with the fact that we are now a global economy and we have yet to fully comprehend the impact of the Great Recession. Add to this the technologies that are changing and influencing every area of our lives. I’m referring to Big Data, 3-D Printing, biotechnology, the demise of Moore’s Law, and disruptive innovations. (I’ve put 11 videos on YouTube about this topic.)
Add to this the number of baby-boomers who are retiring in record numbers (now that the stock market has restored some of the value of their retirement) and we can easily see that companies are scrambling. At this time, key concerns include “employee engagement” and succession planning.
So…let’s try to tackle “employee engagement.” We are learning that just because an employee can document that they have the needed skills, knowledge (experience) and abilities (SKA), doesn’t mean s/he will be engaged.
Business models have focused on measuring everything as proof of their success. Examples include Six Sigma, Lean Manufacturing, Balanced Scorecard and many, many others. But how do we measure employee engagement? And how do we devise a filter for it in an Applicant Tracking System?
Now, what about succession planning? With the record number of retirements, companies are losing their knowledge base. Succession planning is a challenge with a smaller Gen X. As we look to Millennials, we are finding a less-than-enthusiastic labor pool when it comes to corporate culture. So this takes us right back to the engagement question.
NP: So you're saying that the problem isn’t really with ATS at all?
ML: How many times do job seekers go through the interview process to find out that they have been eliminated because the position included something that was left off of the posting? Recruiters continually tell me about their frustrations when companies really don’t know what they want (or need) in a position.
The recruiter goes through long lists of candidates and scores of interviews and learns what the company is actually looking for through the process of learning what they don’t want. (The job seeker gets the frustrating response, “The company has decided to go in a different direction for this position.”)
Finally, the internal hiring professionals are enormously frustrated at the number of unqualified candidates. They are also deeply concerned that after careful vetting and attention to their hiring process, they are still hiring the wrong people.
The good news is that their attention to employee engagement is, in my opinion, exactly the right concern!
I have yet to see a job posting that sufficiently addresses this concern. Instead we get verbiage like, “Must be able to work under pressure and meet tight deadlines.” …now isn’t that inviting?
The root of the problem is how we think about the work that the employee will actually do. So the needed change will first require a shift in our thinking. Then we can ask the right questions so we can communicate with jobseekers. This is a whole new dimension about employment. From this point, we can easily manage the ATS questions to address the concerns about engagement.
NP: What should job seekers do to avoid being eliminated?
ML: That’s the right question as well Neil. The Forward Motion Differentiation Workshop was designed in 2009 and has undergone 17 major upgrades and over 32 minor versions. I say this to make the point that as the hiring processes change, so must the jobseeker understand the phases of elimination in the ATS (usually 4 or 5) and adjust his or her cover letter and resume to fit with this.
It’s important to remember that once a candidate gets through the ATS screening, there are seven or eight more steps to get an offer. They have to appeal to HR first and then make it all the way through to the final approver. The ATS is step one. If we isolate that one step, then I offer the following suggestions:
1. Carefully vet the job posting and the company and apply only for those positions that are truly a good fit.
2. Narrow the information on both cover letter and résumé to address the skills, knowledge and abilities specific to the position. Customize accordingly.
3. Don’t assume that software can make a leap of understanding regarding experience. For example, if the job posting is for an Event Planner and asks for “project management” experience. If the résumé only addresses “event planning” the ATS won’t be able to translate. That résumé will be kicked out because it does not cite “project management.”
4. Different ATS set-ups have filters that may include a myriad of questions. These are critical. Many jobseekers do not fill out demographic information about themselves. Yet, with the AAP compliance, they may be eliminating themselves.
5. There should be ample demonstration of the needed skills, knowledge, and abilities in your résumé. These should come under the bullets in the Work Experience section.
6. Use Times New Roman font. Nothing smaller than 11pt. Despite the on-going concern over tables and bullets: they work just fine because the ATS is reading text strings.
7. If, after carefully entering your information into an ATS, you receive a link that takes you to another ATS and asks you to do it all over again…be encouraged! You've been invited to the “inner sanctum” of the company.
I believe the ATS is here to stay and it’s going to get better and better. As we look to new ways of finding the right people who can genuinely contribute to their employer’s success, it is only going to get better. I’m excited about it and looking forward to continuing to be a bridge between the job seeker and hiring communities.
I'd like to thank Marcia for the time she has taken to share these valuable insights. You can find out more about Forward Motion US and their resources and services here. Do please post any comments or questions below and we'll do our best to answer them.
