Over 75% of large companies and 98% of Fortune 500 companies use Applicant Tracking Systems (ATS) to screen job applications. If your cover letter can't pass the ATS, it will never reach a human recruiter — no matter how qualified you are.

What is an ATS?

An Applicant Tracking System is software that automates the recruitment process. It parses your resume and cover letter, extracts key information, and scores your application against the job description. Only applications that score above a certain threshold make it to a recruiter's desk.

How ATS Screens Cover Letters

Modern ATS systems evaluate cover letters across four key dimensions:

Keyword Match (40%): Does your letter contain the skills, tools, and qualifications mentioned in the job description?
Format & Structure (25%): Is your letter properly formatted with clear sections? No tables, no images, no text boxes?
Grammar & Quality (20%): Are there typos? Awkward phrasing? Run-on sentences?
Personalization (15%): Does the letter demonstrate knowledge of the company and role?

8 Rules for ATS-Friendly Cover Letters

1. Use Standard Section Headings

Use "Dear Hiring Manager," "Sincerely," and standard date formats. Avoid creative headings like "Let's Make Magic Together" — the ATS won't understand them.

2. Mirror the Job Description

Carefully read the job description and naturally incorporate its key phrases into your cover letter. If they're looking for "project management experience with Agile methodology," use those exact words (where truthful).

3. Avoid Graphics, Tables, and Columns

ATS systems struggle with anything beyond plain text. No logos, no charts, no multi-column layouts, no text boxes. Stick to a single-column format.

4. Use Standard Fonts

Stick to Arial, Calibri, Georgia, Helvetica, or Times New Roman. Decorative fonts will confuse the ATS parser.

5. Save as PDF (But Be Careful)

PDF is safe for most modern ATS, but ensure the text is selectable (not an image-based PDF). When in doubt, plain text (.txt) is the safest format.

6. Don't Use Headers/Footers for Critical Info

Some ATS systems ignore header and footer content. Keep your name, contact info, and key details in the main body.

7. Mind the Length

300-400 words is ideal. Too short and you'll miss keywords. Too long and the ATS may penalize you for verbosity.

8. Test Before Sending

Use an ATS scoring tool (like ATSLetter's built-in analyzer) to check your letter before submitting. It takes 30 seconds and could be the difference between an interview and a rejection.

Country-Specific ATS Considerations

ATS expectations vary by country. US companies expect US Letter format and American English spelling. UK companies expect A4 format and British spelling. German companies often expect formal salutations and DIN 5008 formatting. Always check country-specific norms before applying internationally.

ATS-Friendly Cover Letters: The Complete Guide