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Why ATS Knowledge is Critical for Universities in the AI-Driven Job Market

It’s 2026 and ATS optimization for higher education has never been more critical. Every business in every industry has leveraged AI to automate manual processes—and reviewing job applications is one of them. Young graduates now face unemployment rates rising faster than any other demographic, and over half land in jobs they didn’t need college to get.

The gatekeeper? Applicant tracking systems.

This is problematic for students because modern technology, not humans, is now the gatekeeper to the world of work. Businesses are fast integrating applicant tracking systems (ATS) to aid them in the recruitment process – software that screens resumes based on a set of predefined criteria. 

ATS-optimized resumes are now crucial to ensure an application comec into contact with a human. Highly-qualified candidates may face rejection at the first step, purely because they haven’t optimized their resumes for the ATS system. 

Moreover, this directly impacts universities, as alumni employment rates are closely tied to their reputation. Higher alumni employment figures not only improve QS Graduate Employability Rankings but can attract higher quality student applicants (Univariety, 2024). 

Students prioritize colleges that can guarantee a clear pathway to employment, so it’s only natural that they will gravitate toward institutions with strong alumni employment rates.

Therefore, higher education institutions must shift their focus towards guiding students on how to beat the ATS software for a smooth transition into employment. Without this knowledge, students will struggle to escape the doldrums of unemployment, and colleges may see a decline in their alumni employment rates, ultimately affecting their reputation and future enrollment.

In this blog, we put ATS under the microscope, analyze how it works, and give you the essential strategies to help your students optimize their resumes and improve their chances of landing interviews.

What Is an ATS and How Does It Work?

An applicant tracking system is software that helps recruiters and employers manage the hiring process. It can gather thousands of resumes and analyze each candidate’s application with a fine-tooth comb, validating them based on the necessary skills, experience, and qualifications that match the job description. 

Applications that don’t meet the requirements set by the recruiter or employer are far less likely to be seen by a pair of human eyes. Here’s a brief summary of how an ATS system works:

  • A Job Requisition is created: The ATS receives a job requisition, including details like job title, desired skills, and required experience.
  • Resumes Are Parsed and Ranked: As applicants submit their resumes, the ATS examines, and ranks them according to how closely they align with the ideal candidate profile.
  • Hiring Managers Review Top Candidates: Employers can quickly identify the strongest candidates and move them forward in the hiring process.

The primary focus of an ATS involves keyword scanning, resume ranking, and sorting candidates hierarchically based on their relevance to the job description. 

It’s crucial to know that most ATS do not disqualify candidates, however, unless the recruiter sets them to do so. The ATS is going to filter, sort, and then rank for the recruiter to then review.

So how does this play out in reality?

Well, if a recruiter is hiring for an HR Manager and there’s an influx of resumes, the ATS will scan for the search term “HR Manager.” Recruiters will often also have created predefined filters to search for multiple terms in each resume, such as a combination of job titles and skills. 

For example, this could be “HR Manager AND employee relations AND leadership development.” Failure to include these keywords and candidates will fall at the first hurdle.

Teaching a student how an ATS works is part of encouraging a mindset shift—getting a job is a skill that requires proficiency in the right tools and training.

What Are The Key ATS Features Career Coaches Should Know About?

Recent data underscores why these features matter: 99.7% of recruiters use filters in their ATS to find candidates, and 76.4% start by filtering on skills. Understanding how each component works will equip students to overcome them.

There are many aspects of ATS systems that career coaches should be aware of. Understanding how each of these components work synergistically to filter the best candidates will equip students with the knowledge and skills to overcome them.

Keyword Optimization

The ATS acts as a search engine for resumes – it scans the application for specific keywords based on the predefined criteria. This requires students to actively detect what keywords they need to incorporate into their resumes. Here’s how to do it:

  1. Identify Keywords in Job Listings: Read the job description carefully and highlight the most frequently mentioned skills, qualifications, and job titles. These will be the keywords you need to include. 
  2. Add Relevant Keywords: Incorporate the highlighted keywords into your resume, ensuring they align with your experience and qualifications.
  3. Include Both The Long-Form and Acronym Version of Keywords: For example, “Skilled in Search Engine Optimization (SEO)”
  4. Customize for Each Job: Tailor your resume for each job application to match the specific keywords used in the job posting.

Encouraging students to follow these steps will help increase the visibility of their application, enabling them to slip through the ATS filters into the next stage. 

The payoff is significant: Jobscan’s analysis of 2.5 million applications found that candidates with job titles matching the target listing had an interview rate 10.6 times higher than those who didn’t.

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Resume Formatting

ATS software requires specific formatting for it to successfully scan each resume. Keywords are important but they won’t be much use if they’re hidden beneath poor formatting. Here are some crucial formatting guidelines to follow:

  • Avoid Non-ATS-Friendly Elements: Advise students to remove images, columns, tables, and fancy fonts. Encourage them to use traditional fonts like Arial, Garamond, or Georgia for better compatibility.
  • Choose the Right Resume Format: Guide students to use a hybrid resume format rather than a functional format, as this is more likely to be ATS-friendly.
  • Use a Traditional Resume Font: Highlight that standard resume fonts like Arial, Garamond, or Georgia, make their content more readable for the ATS.
  • Adopt Standard Section Headings: Recommend students use clear and traditional section headings instead of creative or clever alternatives. 

Example:
❌ Incorrect: “What I Bring to the Table”
✅ Correct: “Skills and Qualifications”

File Type

Students should send their applications in universally accepted formats such as Microsoft Word or a PDF file. 

How Career Coaches Can Help Students Beat the ATS

Under the framework of experiential learning theory, students will need opportunities to apply theoretical knowledge in practical settings to fully develop their skills. This can be done in a number of ways.

Conduct ATS-Optimized Resume Workshops:

These seminars provide students with the tool kit required to unlock job opportunities. They’re designed to provide treasure troves of insights, uncovering key aspects such as keyword optimization, formatting, and application personalization. 

Career coaches can provide guidance in a one-on-one format or through group workshops. In these classes, students can be exposed to a myriad of different resume examples and templates to clarify exactly what an ATS-optimized application looks like. Jobscan’s experienced customer success team helps support career centers that provide these workshops, ensuring students get practical, expert advice.

Mock Applications

Nothing beats practice. Mock applications allow students to cut their teeth on the real-world process of applying through ATS systems. It’s an opportunity to put their skills to the test without jeopardizing a real job application. 

Using dummy ATS systems, the hands-on experience will sharpen the students’ skillsets, whilst incrementally increasing their performance and confidence. In a short space of time, students will understand exactly how the ATS scans their resumes, shedding light on how to optimize it. 

Leverage ATS-Optimization Tools

ATS optimization tools are one of the most powerful ways for students to ensure their resumes pass through the automated filtering process. Tools like Jobscan serve as a barometer, giving students a resume score and offering feedback on which areas need optimization.

Missing keywords are highlighted, along with shortcomings in formatting. Students can take this a step further by using the tool to craft tailored statements that showcase their specific skills in a format easily processed by ATS systems. 

For career services professionals managing high caseloads—over 60% of institutions report persistent staffing challenges—these tools enable students to self-serve on foundational optimization, freeing advisors for deeper strategic conversations.

The Future of ATS

ATS adoption is now near-universal. Jobscan’s 2025 research found that 98.4% of Fortune 500 companies use an ATS—up from previous years. Among smaller companies, platforms like Greenhouse (19.3% market share), Lever (16.6%), and Workday (15.9%) dominate. The question is no longer whether employers use ATS, but how sophisticated their filtering has become.

AI has propelled us into a new frontier in recruitment. It will be the digital interview before the real interview. Therefore, career coaches will have to keep their ears on the ground to pick up on the latest trends and advancements in ATS technology. 

By staying informed on ATS optimization for higher education, career coaches can ensure their students remain competitive in a job market increasingly shaped by AI-driven recruitment.

Career Coaches Must Unlock ATS to Help Students Thrive In the AI-Driven Job Market

The hiring landscape has fundamentally shifted. ATS technology is now standard infrastructure for employers of all sizes, and ATS optimization for higher education has become essential—not optional—for career services teams seeking to improve student outcomes.

Students want a parachute-landing into employment and universities want high alumni employment rates. To achieve both, higher education institutions must prioritize understanding how ATS technology functions, and train students in how to optimize their resumes. 

This education is the tide that lifts all boats in the harbor – students are more likely to secure jobs and colleges will benefit from higher alumni employment rates. 

For higher education institutions, the stakes extend beyond reputation. With federal accountability measures now tying aid eligibility to graduate employment outcomes, effective ATS education supports both student success and institutional viability.

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