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ATS Optimization

Definition

ATS optimization is the practice of structuring and wording your resume so that Applicant Tracking Systems — software like Greenhouse, Lever, Workday, and Ashby — can correctly parse, categorize, and score it. These systems filter incoming applications before a human recruiter ever sees them. A resume that is not ATS-friendly may be rejected automatically, regardless of the candidate's qualifications.

Why It Matters for Product Managers

The PM job market is competitive. Popular PM roles at well-known companies receive hundreds of applications. Recruiters physically cannot review every resume, so they rely on ATS software to surface the most relevant candidates. The ATS parses each resume, extracts key data (job titles, skills, years of experience, education), and ranks candidates against the job description's requirements.

If your resume uses formatting the ATS cannot parse, or if it lacks the specific keywords the hiring team configured as filters, your application may score low and never reach human review. This is especially frustrating for qualified PMs whose resumes emphasize the right experience but use different terminology than the job posting.

Understanding ATS optimization is a practical product-thinking exercise in itself: you are designing a document (your resume) for two users (the ATS software and the human recruiter) with different needs and constraints.

How It Works in Practice

ATS optimization covers three areas: formatting, keywords, and structure.

Formatting rules:

  • Use a single-column layout. Multi-column designs confuse most parsers.
  • Avoid tables, text boxes, headers, footers, and images. The ATS cannot read them reliably.
  • Use standard section headings: "Experience," "Education," "Skills." Creative headings like "Where I've Made Impact" may not be recognized.
  • Stick to common fonts (Arial, Calibri, Times New Roman) and standard file formats (PDF or .docx, depending on the company's instructions).
  • Include dates in a consistent format (e.g., "Jan 2022 - Mar 2024") so the ATS can calculate tenure.
  • Keyword matching:

  • Read the job description carefully and identify the specific terms it uses. If the posting says "roadmap prioritization," use that exact phrase rather than "backlog grooming" or "feature planning."
  • Mirror the tools mentioned: if the job lists Amplitude, Jira, and Figma, name those tools in your experience bullets where truthful.
  • Include both acronyms and full terms: "OKRs (Objectives and Key Results)" covers both forms.
  • Structure for PM resumes:

  • Lead each role with a 1-line scope summary (team size, product, users).
  • Use STAR-formatted bullet points: start with a strong action verb, describe what you did, and quantify the result.
  • Place the most relevant keywords and accomplishments in the top third of the resume — ATS ranking algorithms and human recruiters both prioritize what appears first.
  • Common Pitfalls

  • Over-optimizing with keyword stuffing. If you list every buzzword from the job description without context, the ATS may score you well but the recruiter will immediately see through it. Keywords must appear within genuine experience descriptions.
  • Using a "creative" resume template. Infographic resumes, skill bar charts, and icon-heavy designs consistently fail ATS parsing. Save creative formatting for your PM portfolio site, not your resume.
  • Ignoring the job description. Each application should be lightly tailored. The same base resume can be adjusted in 10-15 minutes by swapping a few keywords and reordering bullets to match the specific posting.
  • Assuming referrals bypass the ATS. At many companies, even referred candidates have their resume entered into the ATS. The referral may flag your application for priority review, but the resume still needs to parse correctly.
  • Frequently Asked Questions

    Do most companies use an ATS for PM hiring?+
    Yes. Over 95% of Fortune 500 companies and the vast majority of tech companies use an ATS — tools like Greenhouse, Lever, Workday, and Ashby. Even many startups with 50+ employees use them. If you are applying through an online portal rather than a direct referral, your resume almost certainly passes through ATS screening.
    Can good formatting really get a resume rejected?+
    Yes. ATS software parses resume text to extract structured data like job titles, company names, dates, and skills. Two-column layouts, tables, headers/footers, images, and unusual fonts can break the parser, causing it to misread or skip sections entirely. A resume that looks beautiful as a PDF can be unreadable to an ATS. Always test your resume by pasting it into a plain text editor to see what the ATS will actually parse.

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