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Do Companies Use an ATS on Cover Letters (Or Just Resumes)?

melissatrager

Applicant Tracking Systems (ATS) has become a staple in modern recruitment, helping companies manage the influx of applications they receive. This raises a crucial question for job seekers: do companies use an ATS to scan cover letters, or are they solely focused on resumes? The answer is that it depends. While ATS software can scan cover letters, it's less common than scanning resumes, and how they're processed often differs.


Resumes are the primary target for ATS software. These systems are designed to parse the structured data within a resume, extracting key information like skills, experience, and education. This data is then used to rank candidates based on their match to the job description. Therefore, optimizing your resume for ATS is crucial.


While some ATS platforms can scan cover letters, several factors make this less universal:

  • Unstructured Data: Cover letters are typically written in a more narrative, free-flowing format, making them harder for ATS to parse accurately. Unlike the structured data in a resume, cover letters contain more contextual information and varied sentence structures.

  • Focus on Resumes: Many companies rely on resumes for the initial screening, using the ATS to filter candidates based on hard skills and experience. Cover letters are often reviewed later in the process, if at all.

  • Varying ATS Capabilities: Not all ATS software is created equal. Some older systems may not have cover letter scanning capabilities, while newer, more sophisticated platforms might offer more advanced parsing.


So, Should You Optimize Your Cover Letter for ATS?

The best approach is to assume that your cover letter might be scanned. Optimizing it for readability and incorporating relevant keywords can only improve your chances. Here's how:

  1. Use Relevant Keywords: Like your resume, incorporate keywords from the job description throughout your cover letter. Focus on skills, qualifications, and industry-specific terms. However, avoid keyword stuffing, which can make your letter sound unnatural.

  2. Use a Simple Format: Keep your document clean and straightforward. Avoid unusual fonts, tables, or images, which can confuse ATS software. Use standard fonts like Times New Roman, Arial, or Calibri and simple formatting like bolding and italics sparingly.

  3. Use Standard Headings: If you include headings in your cover letter (though not always necessary), use standard headings like "Summary," "Experience," or "Skills" rather than creative or unusual ones.

  4. Use Proper Grammar and Spelling: Errors in grammar and spelling can create a negative impression, whether a human or an ATS is reviewing your letter. Proofread carefully before submitting.

  5. Focus on Readability: Even if an ATS scans your cover letter, a human will ultimately read it. Prioritize clear, concise writing and a professional tone. Use short paragraphs and avoid jargon or overly complex sentences.

  6. Tailor It to the Job (Human Focus): While some basic optimization is helpful, the primary purpose of your cover letter is to impress a human reader. Tailor it to the specific job and company, highlighting your relevant skills and experience and demonstrating your genuine interest in the role.


While using ATS on cover letters is less consistent than on resumes, optimizing your cover letter for readability and incorporating relevant keywords is still a valuable practice. By focusing on clear writing, a professional tone, and tailoring your letter to the specific job, you can create a compelling document that strengthens your application, regardless of whether it's scanned by an ATS or read directly by a recruiter. Remember, the ultimate goal is to make a positive impression on a recruiter and secure an interview.



 
 
 

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