ATS-friendly cover letter (for 2024)

What is ATS, and why does it matter?

An applicant tracking system is software designed to scan, sort, and rank applications based on relevance to the job posting. ATS tools like Workday, Taleo, and Greenhouse are widely used across industries to identify top candidates. 

Here’s how a cover letter ATS scanner works: ATS software analyzes your cover letter and resume for specific keywords, evaluates your formatting, and sees how well your documents align with the job description. If your application doesn’t meet these benchmarks, it may get filtered out before a recruiter ever sees it. That’s why you need an ATS-friendly cover letter. 

Key principles of an ATS-friendly cover letter

What does an ATS cover letter look like? Here are some key principles to keep in mind when optimizing your letter for applicant tracking systems. 

Proper formatting

There’s a common misconception that applicant tracking systems want sophisticated, complex letters. That’s just not true. When it comes to creating an ATS cover letter, simplicity is your best friend. 

Stick with ATS-compatible formats like Word (.doc or docx) or PDF unless the job listing specifies otherwise. Some older applicant tracking systems may struggle with PDFs, so Word files are a safer bet.

You’ll also need to use clean, professional fonts like Arial or Times New Roman. Use a standard font size of 10 or 12 points. Make sure all of your headings are clearly labeled to help the software sort out sections. 

While it may be tempting to make your letter stand out with images or tables, resist this urge. Although graphics can be eye-catching, they may also confuse some systems and cause the platform to skip over key parts of your letter. 

Strategic use of keywords

What do applicant tracking systems actually look for? While they analyze every inch of your cover letter, the main thing they are searching for is relevant keywords from the job description. You need to naturally incorporate these phrases into your letter to outrank other candidates. 

Carefully read the job posting to see what tools, qualifications, and skills the hiring manager is looking for. Suppose that you are applying for a job that requires “project management” and “budget forecasting.” Make sure to include these exact phrases in your cover letter and resume. 

Here’s what a relevant job posting excerpt might look like: “Seeking a project manager with experience in budget forecasting and leadership and proficiency in Microsoft Office tools.” 

Here’s how you could incorporate this posting into your cover letter: “As a seasoned project manager, I have led cross-functional teams to achieve project goals while maintaining strict budget forecasting practices. My expertise in Microsoft Office extends to all core tools, including Word, PowerPoint, Excel, Outlook, Teams, and SharePoint.” 

In this example, all of the key skills the job description mentions are seamlessly incorporated into the cover letter content. You want to use this same approach when creating your ATS cover letter so it passes the applicant tracking system’s scan while also maintaining readability. 

Content structure

A clear and well-organized cover letter makes it easier for both ATS and humans to follow your content. You’ll start with a strong opening that mentions the role you’re applying for and why you’re a great fit.

As you transition into the middle of your ATS cover letter, align your skills and achievements with the job requirements. Sprinkle keywords from the job description throughout each paragraph, but make sure to work them in naturally. You don’t want the content to seem forced or choppy. 

Always end with a call to action. Express your enthusiasm for the opportunity and invite the recruiter to contact you. 

Common mistakes to avoid

Creating an ATS cover letter can be tricky. It’s easy to overdo it with keywords or graphics, and this can actually hurt your odds of landing an interview. Avoid the following common pitfalls to ensure your cover letter stands out for all the right reasons. 

Overloading keywords

While incorporating keywords is critical for passing ATS screenings, overloading your cover letter with them can backfire. Make sure that you don’t resort to keyword stuffing, which involves forcing as many job description terms into your writing as possible. This simple mistake will make your content feel unnatural or robotic. For instance, repeating “team collaboration” every other sentence dilutes your message.

The good news is that it’s an easy fix. Make a list of all of the keywords in the job description that align with your skills and experience. Try to use all of them at least once and in a relevant context. 

For instance, don’t say, “I excel in project management and team collaboration.” Instead, say something like, “I exhibited my project management skills while overseeing a $500,000 project, promoting team collaboration to deliver results ahead of schedule and under budget.” 

You should quantify your statements wherever you can. Linking your actions to skills from the job description and tangible results will differentiate you from other applicants. 

Using fancy graphics

It’s tempting to spice up your cover letter with charts, tables, or unique designs, especially if you are applying for a creative role. However, many ATS platforms aren’t equipped to process visual elements. The software may distort or entirely skip over these sections. This can lead to incomplete applications that may never reach human eyes.

Stick to a clean, text-based design. Use simple, professional fonts and standard headings. Apply traditional spacing so all of your text doesn’t blur together. 

If you need to share your creative work with the hiring team, do so via a link within the cover letter. The link won’t interfere with the ATS scan, and hiring managers will be able to explore your portfolio if they dig deeper into your letter. 

Submitting generic content

Sending the same cover letter to multiple employers without tailoring it to each job is one of the fastest ways to get overlooked. Copy-and-paste letters won’t feature specific job requirements or keywords. Even if you make it past the ATS, your cover letter will have a generic feel that demonstrates you didn’t take the time to read the job description.

Personalize every cover letter. Start by thoroughly reading every job description and making notes about what the company is looking for. Research the business and its values. If possible, subtly mention how your background and skills align with the company’s mission and vision.

Customizing your resume and cover letter increases your odds of making it past an applicant tracking system. Hiring managers will also appreciate that you took the time to create a custom document for their company. 

Forgetting about your resume 

While you aren’t likely to forget your resume, simply including one isn’t enough. You’ve got to make sure you are creating an ATS resume. That means integrating some of the same keywords from the job description and your cover letter into your resume.

Remember, cover letters and resumes are meant to be complementary documents. They should build on one another to make you stand out and provide a more complete look at what you bring to the table. 

"A clear and well-organized cover letter makes it easier for both ATS and humans to follow your content."

Customizing ATS cover letters for different industries 

Every industry has its own buzzwords. The top applicant tracking systems allow businesses to tailor their scanning processes to align with industry terminology. 

You’ll need to adapt your cover letter to reflect those key phrases if you want to stand out. While you don’t want to overuse industry lingo in your cover letter and resume, mentioning technical terms that are in the job description is okay. Even if the person reviewing your application is from HR, they should have a surface-level understanding of these skills. 

Here’s how to create an ATS cover letter for a few popular fields.

Tech

The technology sector values technical terms like “Agile development,” “cloud computing,” and “JavaScript.” For example, you might say, “I have extensive experience in Agile development, working with interdepartmental teams to deliver cloud-based solutions.” 

You need to make your content accessible for people of non-technical backgrounds while using just enough industry-specific language to showcase your expertise. 

Healthcare

Use this same accessible but technical approach when applying to healthcare roles. Incorporate terms like “patient care,” “EMR systems,” or “clinical research,” depending on your background and the role you are applying for. 

For example, you might say something like, “My experience with patient care and proficiency in EMR systems ensures accurate and efficient delivery of service.” 

Finance

Use industry-specific phrases like “financial modeling,” “risk assessment,” or “budget forecasting.” You may include something like this in your ATS cover letter for a financial role: “I specialize in performing risk assessments and building financial models, helping my organization make informed investment decisions.” 

Don’t see your industry mentioned above? It’s always a good idea to look at some cover letters and resume examples specific to your industry. By speaking the language of your target industry, you increase your odds of passing the ATS screening. 

Balancing ATS optimization and human appeal

While your cover letter must satisfy ATS requirements, you can’t forget about your ultimate audience — the hiring manager. Here are some tips to help you create a balanced letter:

• Use professional but conversational language
• Let your personality shine
• Trim any unnecessary fluff, even if it means leaving out a couple of keywords
• Read your letter aloud to ensure it has a natural rhythm and clarity 

Check out some cover letter examples to get a feel for what an optimized document looks like. The best ATS cover letters can pass a platform’s analysis while maintaining their human appeal. 

Use ATS-friendly cover letter templates to stand out

Cover letter templates can save you a lot of time and effort while ensuring that your documents are in an ATS-friendly format. Just make sure you choose a matching resume template for consistency. By aligning your skills with the job requirements, you’ll increase your odds of passing an ATS scan while crafting a letter that catches the eye of hiring teams. 

Sources:

(1) Select Software Reviews: Applicant Tracking System Statistics (Updated for Q4 2024)