How to Write a Cover Letter That Beats ATS

75% of qualified candidates are rejected by Applicant Tracking Systems (ATS) simply because their cover letters fail to meet the system's requirements. To ensure your application gets through, you need to optimize your cover letter for ATS compatibility. Here's how you can do it:

• Use Relevant Keywords: Extract key terms from the job description and integrate them naturally into your cover letter. Focus on technical skills, industry terms, and action verbs.
• Keep Formatting Simple: Stick to clean, basic layouts with standard fonts (e.g., Arial, Calibri) and avoid graphics, tables, or decorative elements that could confuse ATS software.
• Save in the Right Format: Use .docx or PDF files to ensure compatibility with most systems.
• Tailor Your Content: Customize your cover letter for each role by addressing specific job requirements and highlighting measurable achievements.
• Test for ATS Readability: Use tools or plain text editors to check how your cover letter will appear to an ATS.

How ATS Works

What ATS Is and Why It Matters

Applicant Tracking Systems (ATS) are software tools designed to quickly scan, analyze, and rank job applications. These systems streamline the hiring process by sorting through applications in just minutes.

Nearly 99% of large companies use ATS, and 75% of recruiters depend on them to manage applications efficiently. Here's how it works: once you submit your cover letter, the ATS breaks it into sections like contact information, work experience, education, and skills. Then it searches for keywords, skills, and qualifications that match the job description, assigning your application a relevance score based on how well it aligns with the role.

Modern ATS systems go beyond simple keyword matching. They use natural language processing (NLP) and machine learning to understand the context of keywords, making hiring decisions more accurate. This means the system can recognize related terms, synonyms, and phrases, even if they aren't exact matches.

The ranking process is driven by custom filters and scoring methods. Recruiters can prioritize specific keywords, skill sets, or levels of experience, and the system allocates points accordingly. Your cover letter's score depends on how closely its content matches the job's specific requirements.

Knowing how ATS evaluates your application is key to avoiding mistakes that could hurt your chances.

Why Cover Letters Fail ATS Checks

The numbers paint a challenging picture: 75% of qualified candidates are rejected by ATS due to readability problems. On average, only 15% of resumes make it past the system to reach human recruiters, and in competitive industries like tech, that number drops to just 3%.

One of the biggest issues is formatting. ATS systems struggle with complex layouts - things like graphics, tables, columns, text boxes, or decorative fonts can confuse the software and lead to parsing errors. If the system can't read your cover letter properly, it might assign a low score or reject it altogether.

File formats also matter. Word documents (.docx) are the safest choice, followed by PDFs. Other formats may cause compatibility issues, making your cover letter unreadable.

Another common problem is missing keywords. If your cover letter doesn’t include enough relevant terms from the job description, it will likely score poorly. However, overloading your application with keywords (known as keyword stuffing) can also hurt your chances by making your writing seem unnatural.

Inconsistent formatting is another pitfall. If your cover letter lacks clear structure or has inconsistent section headings, the ATS may misinterpret or overlook important details about your experience.

Spelling and grammar mistakes can also work against you. These errors not only prevent proper keyword matching but also suggest a lack of attention to detail, lowering your relevance score.

Finally, ATS systems value measurable achievements and action-oriented language. Cover letters that focus only on job responsibilities, rather than accomplishments, tend to score lower. Including quantifiable results and strong action verbs can make a big difference.

Job Search Tips The Resume, Cover Letter, and ATS

How to Optimize Your Cover Letter for ATS

Now that you know how ATS systems work and why some cover letters don't make the cut, it’s time to craft one that checks all the boxes. The goal? Balancing ATS-friendly features with a compelling narrative that grabs the attention of human recruiters.

How to Find and Use Relevant Keywords

An ATS-friendly cover letter starts with the right keywords - pulled directly from the job posting. Carefully review the job description and note recurring terms, required skills, and specific qualifications. Pay close attention to both technical skills (like "Python programming" or "data analysis") and soft skills (like "team leadership" or "strong communication").

Build a keyword list by focusing on three areas: technical skills, industry terms, and action verbs. For instance, if you’re applying for a marketing role, keywords like "SEO", "content strategy", "campaign management", and "digital marketing" should naturally appear in your cover letter.

Here’s how to integrate keywords effectively: Instead of listing them robotically - "I have experience with SEO, content strategy, and digital marketing" - weave them into your story. For example: "During my three years managing content strategies for e-commerce brands, I boosted organic traffic by 150% through targeted SEO efforts and innovative digital campaigns."

Also, include keyword variations to account for ATS systems’ ability to recognize synonyms. This not only improves your ATS ranking but also keeps your writing fluid and engaging.

Avoid overloading your cover letter with keywords (a practice known as keyword stuffing). A good rule of thumb? Use 5-8 relevant keywords spread naturally across your letter. This approach keeps the tone professional while ensuring the ATS picks up on the right signals.

Once your keywords are in place, it’s time to focus on formatting.

Formatting Tips for ATS Compatibility

The way your cover letter looks can significantly impact how ATS parses it. Stick to a clean, simple format and use standard fonts like Arial, Calibri, or Times New Roman in 10-12 pt size. These fonts are easy for ATS systems to read and still appear professional to recruiters.

Stick with a single-column layout and avoid complex design elements that might confuse ATS. Place your contact information at the top in plain text, rather than embedding it in a header or footer.

When saving your file, use a straightforward naming convention like “FirstName_LastName_CoverLetter.docx” to help recruiters keep track of your application.

If you include headings, use standard ones like "Dear Hiring Manager" for your greeting. For dates, follow the American format (e.g., MM/DD/YYYY or Month DD, YYYY). Additionally, spell out numbers under ten and use numerals for larger figures (e.g., "five years" but "15 projects").

Keep your formatting consistent throughout the document. Use uniform margins (1-inch is a safe choice) and equal spacing between paragraphs. Avoid special characters or symbols that might not translate well in ATS systems. While bold text is generally acceptable for emphasis, steer clear of italics, underlines, or unusual formatting that could disrupt ATS parsing.

With formatting squared away, the next step is tailoring your content to the specific job.

How to Tailor Your Cover Letter to Each Job

To truly stand out, your cover letter needs to reflect the employer’s unique needs. Customization is key to making a strong impression. Start by researching the company - its values, recent news, and industry challenges. Use this knowledge to show how your experience aligns with their goals.

Adjust your tone to match the company’s culture. For example, a tech startup might appreciate a conversational and creative tone, while a corporate law firm would expect a more formal and precise style. Pay attention to the language used in the job posting, and mirror it in your letter. If the posting emphasizes terms like "collaboration" or "fast-paced environment", naturally incorporate those phrases into your writing.

Highlight 2-3 key achievements that directly relate to the role. Instead of listing generic responsibilities, focus on measurable results. For instance, instead of saying, "Managed projects and teams", say: "Led a cross-functional team of eight to deliver a $2.5 million project three weeks ahead of schedule." Quantifying your accomplishments makes them more impactful.

Address specific challenges mentioned in the job description. If the company is seeking someone to "improve customer retention", share a concrete example of how you increased retention rates in a previous role. This demonstrates that you not only understand their needs but also have the skills to address them.

Tools like ScoutApply.com can simplify this process. Their AI analyzes job descriptions to suggest relevant keywords and phrases for your cover letter. They also offer templates optimized for ATS compatibility, which you can personalize for each job application.

Whenever possible, find the hiring manager’s name and address them directly. A personalized greeting like "Dear Sarah Johnson" is more effective than the generic "Dear Hiring Manager." LinkedIn and the company’s website are great resources for identifying the right contact.

Finally, end your cover letter with a specific call to action that ties back to the role. Instead of a vague closing like, "I look forward to hearing from you", try something more tailored: "I’m eager to discuss how my experience in data analytics can help ABC Company enhance its customer insights." This leaves a lasting impression on both ATS and human reviewers.

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Testing and Improving Your ATS-Friendly Cover Letter

Crafting an ATS-friendly cover letter is just the beginning. To truly make an impact, you need to test and refine it regularly. This ensures your cover letter not only meets ATS standards but also gets noticed by recruiters. Think of it as a living document - one that evolves with feedback and changes in job requirements. Regular testing helps you stay on track with ATS criteria and improve your chances of success.

How to Test ATS Compatibility

Before hitting "submit", it’s a good idea to test your cover letter for ATS compatibility. A simple way to do this is by using the plain text conversion test. Copy your cover letter into a plain text editor like Notepad. If the text appears clean and readable - without strange symbols or formatting issues - it's more likely to pass ATS checks.

For a deeper dive, try ATS simulation tools. These tools mimic how applicant tracking systems analyze documents. They evaluate things like keyword usage, formatting, and overall structure, often providing detailed feedback. For example, ScoutApply.com offers a compatibility score and tracks your improvements over time.

Why does this matter? Research shows candidates with ATS scores above 80% are three times more likely to land interviews than those with lower scores. To boost your score, focus on using relevant keywords, maintaining a clean layout, and organizing your content logically.

Use the results from these tests to make targeted improvements to your cover letter.

How to Improve Your Cover Letter Based on Results

If your testing reveals a lower-than-desired ATS score, don’t panic - it’s an opportunity to refine your approach. Start by enhancing your keyword usage, ensuring you’re incorporating job-specific terms naturally throughout your cover letter. Next, fine-tune your formatting to make it ATS-friendly, avoiding complex layouts or graphics that could confuse the system.

Tools like ScoutApply.com can provide valuable insights, identifying patterns that work well and offering suggestions for further tweaks. By regularly reviewing feedback and making adjustments, you’ll keep your cover letter aligned with ATS standards and tailored to the roles you’re pursuing. This ongoing effort ensures your application stays competitive in a fast-changing job market.

Conclusion: Writing an ATS-Optimized Cover Letter for Success

A strong cover letter does more than just get past automated systems - it sets you apart as the ideal candidate right from the start. Let’s recap the key strategies to make your cover letter stand out.

Start with keywords. Carefully study the job description and weave relevant terms naturally into your writing. This approach not only aligns with the ATS but also shows hiring managers that you truly understand the role and its requirements.

Keep the formatting simple. Use clear fonts, straightforward headers, and standard file formats. These small details ensure your application doesn’t get lost in the shuffle of automated systems.

Personalize every application. A generic cover letter is easy to spot and won’t make the cut in today’s competitive hiring landscape. By tailoring each letter to the specific employer, you can highlight the experiences and achievements that matter most for the role.

Refine and test continuously. Writing a cover letter is not a one-and-done process. Regularly updating and improving your approach ensures you stay competitive. Tools like ScoutApply.com can simplify this process with ATS-friendly templates, guided edits, and tracking tools to keep your applications on point.

Your cover letter is often your first chance to make an impression on a potential employer. By combining keyword precision, clean formatting, personalized content, and ongoing improvements, you’re not just passing the ATS - you’re setting yourself up for success in your entire job search.

FAQs

How can I find the right keywords to make my cover letter ATS-friendly?

To ensure your cover letter gets through an ATS (Applicant Tracking System), start by thoroughly analyzing the job description. Look for key phrases, skills, and qualifications that are mentioned multiple times. These could include specific technical abilities, industry terms, or role-related requirements. Weave these exact terms naturally into your cover letter to match what the system is scanning for.

Don’t overlook details like required certifications, software expertise, or action verbs that align with the job’s responsibilities. By tailoring your wording to reflect the job posting, you improve your chances of clearing ATS filters and grabbing the recruiter's attention.

What formatting mistakes should I avoid to ensure my cover letter passes an ATS?

When crafting your cover letter to pass through an ATS (Applicant Tracking System), keep it simple and professional. Avoid using uncommon fonts, images, or graphics, as these can confuse the system. Stick to plain text and standard formatting, using familiar headings like "Dear Hiring Manager" and "Sincerely".

Also, steer clear of complicated layouts or unconventional file formats. Save your document as a .docx or PDF to ensure it's easily readable by most ATS software.

How often should I update and refine my cover letter to stay ATS-friendly?

To make your cover letter more effective for ATS systems, tweak and refine it each time you apply for a job. Focus on tailoring the content to the specific job description by including relevant keywords and phrases. This alignment not only helps your cover letter match the role but also increases your chances of getting through ATS filters.

If your job search spans several months, take time to revisit your cover letter periodically. Update it to highlight your latest skills, experiences, and accomplishments. A well-maintained and up-to-date cover letter leaves a positive impression on both ATS systems and hiring managers.