2026 Hiring Insights Report: ATS, AI, & Employer Expectations

Table of Contents

Hiring in 2026 is faster and more automated, with applicant tracking systems (ATS) and artificial intelligence (AI) shaping how job applications are screened and reviewed.

To understand what these shifts mean for job seekers, Resume Genius surveyed 1,000 U.S. hiring managers for our 2026 Hiring Insights Report. The results reveal what helps candidates get noticed, what triggers early rejections, and how to stand out in today’s hiring process.

Key Takeaways

71% of hiring managers screen applications using applicant tracking software (ATS)
79% of companies have automated at least some of their hiring process
1 in 5 hiring managers (19%) use AI to purposefully screen out applications before they get a human review
80% can spot an AI-written resume at a glance
86% hire for experience over education
48% are prioritizing communication and collaboration skills in 2026
Salary negotiations are most likely to be successful within a 15–20% range

ATS use in 2026

As applicant tracking systems (ATS) become more common, job seekers may worry their resume is being judged by software before a person ever reads it.

To understand how much influence ATS tools really have, we asked hiring managers how they use them and how early ATS enters into hiring decisions.

Adoption rate

Overall, 71% of hiring managers say their company uses an ATS. Adoption is highest among younger hiring managers:

Gen Z (85%)
Millennials: (75%)
Gen X: (67%)
Baby Boomers (35%)

Why employers use ATS

As job postings attract more applicants, hiring managers say ATS software helps them manage volume and move faster in the early stages.

Here’s what hiring managers say ATS supports most:

Reviewing applications faster (60%)
Managing large volumes of applications (50%)
Identifying candidates who don’t meet basic requirements (49%)
Searching, sorting, and organizing applications (46%)
Evaluating candidates more consistently and fairly (42%)
Supporting record-keeping and compliance (31%)

Shortcomings & limitations

Hiring managers also reported drawbacks, mostly related to how ATS software affects the quality and feel of the hiring process. Here’s what challenges they’ve had with an ATS:

33% say it makes the hiring process feel less personal
33% say ATS overemphasizes keyword matching over overall fit or experience
21% report reviewing resumes is harder due to formatting or parsing issues
19% believe ATS leads to more candidate questions or complaints
16% say it’s harder to identify truly qualified applicants

Notably, Gen Z hiring managers are the most critical of ATS, especially on personalization and keyword-heavy screening.

44% of Gen Z managers say ATS makes hiring feel less personal, compared with 35% of Millennials, 28% of Gen X, and 22% of Baby Boomers.
44% of Gen Z managers say ATS overemphasizes keyword matching over overall fit or experience (versus 31% of Millennials, 34% of Gen X, and 24% of Baby Boomers).

Automation & human involvement

ATS software often gets blamed for rejecting resumes before a human ever sees them. But our survey suggests hiring managers usually remain closely involved.

According to hiring managers:

49% still personally review resumes and use the ATS to flag, rank, or organize them
37% let the ATS screen out applications based on criteria they set

Ideal file format for systems

Formatting affects whether an application gets processed smoothly. Hiring managers say ATS tools work best with simple, standard file types — and are more likely to struggle with overly designed or unconventional layouts.

Formats hiring managers say work best with ATS software include:

Text-based PDFs with no images or complex formatting (53%)
Word documents (.docx) (43%)
PDFs with light design elements, such as colors or columns (34%)
Plain-text or fully machine-readable resumes (24%)

By contrast, design-heavy resumes are far less reliable:

Only 13% say layouts with images or heavy design elements are compatible with their ATS

Filters & rejection

Beyond format, resumes are most likely to be filtered out by the ATS when they don’t clearly show the candidate meets the job’s core requirements.

Top rejection reasons include:

Missing required skills or poor alignment with the job description (42%)
Failure to meet basic role requirements (36%)
Unclear or incomplete work history (33%)
Generic or AI-heavy content (28%)
Lack of relevant keywords (28%)
Formatting that’s difficult to scan or read (26%)
A resume that’s too long or dense (20%)

Notably, resume length ranks lower than skill mismatch, unclear experience, or generic content, suggesting relevance and clarity matter more than keeping a resume strictly short.

AI’s influence over hiring decisions

As hiring becomes more automated, it’s natural to wonder how much control AI actually has behind the scenes. To get clarity, we asked hiring managers how their teams use AI today.

Applications in 2026

AI has moved from experimentation to everyday use in hiring: Nearly 8 in 10 hiring managers (79%) say their companies use AI somewhere in hiring or recruiting.

Most AI use is concentrated in the early, administrative stages. Here’s how most employers use the technology:

35% screen or rank resumes or applications
33% schedule interviews or manage logistics
32% source candidates
31% write job descriptions or job ads
28% communicate with candidates (e.g., outreach, follow-ups, Q&A)
23% conduct pre-screen interviews (e.g., automated phone screenings, AI video interviews)
21% use AI in interviews to write questions, take notes, or summarize candidate information
21% create or score skills tests or assessments

In some workflows, AI can take limited actions.

13% say AI can automatically send messages or move candidates forward based on predefined criteria

AI & decision-making

Widespread use doesn’t mean unchecked authority. Most hiring managers describe AI as a decision assistant, not a decision maker:

32% say AI recommends or ranks candidates, but humans make all final hiring decisions
22% say AI is used strictly for administrative support
19% say AI screens out some candidates using rules set by humans

Only a small group of hiring managers report minimal human oversight.

6% say AI can move candidates forward or reject them with limited human review

Resume insights for 2026

Resumes are easier to skim and better tailored than ever. But hiring managers say it’s also harder to trust what they’re reading as AI becomes more common in job applications.

AI use is making resumes polished but unoriginal

At first glance, applications are improving. Hiring managers say resumes today look more professional and are more closely aligned with open roles. At the same time, many say resumes feel more formulaic and less personal, largely due to AI-assisted writing.

79% say resumes are more polished and visually appealing than five years ago
78% say resumes are better tailored to specific job postings
76% of hiring managers say the overall quality of resumes has improved in recent years

However, “better tailored” doesn’t always mean more distinctive. AI tools can quickly mirror job descriptions and insert keywords, which helps candidates check the right boxes, but can make applications sound the same.

Among hiring managers:

80% say they can often tell when a resume has been written by AI
77% say many resumes appear completely or partially AI-generated
69% say resumes are more generic or formulaic than they were five years ago

Even design improvements can backfire:

52% of hiring managers say resumes today have more formatting issues than before, issues that can interfere with ATS parsing and slow down human review

Clarity matters, creativity distracts

In high-volume hiring, hiring managers want resumes that make key information easy to find. Clean structure and consistent formatting matter more than visual creativity.

90% say a clear resume summary helps them evaluate candidates faster
85% expect every resume to include a skills section
72% say inconsistent spacing or formatting hurts their perception of a candidate
62% say overly designed resumes with lots of color or visual elements hurt their perception of a candidate

Some “rules” are also less rigid than candidates often assume:

43% of hiring managers won’t read resumes longer than two pages
57% will read beyond two pages when the information is relevant
55% say a headshot or photo can help a candidate move forward
45% don’t want resumes to show what a headshot looks like

Hiring managers also want balance. A clear skills section helps, but it shouldn’t replace experience.

56% say resumes that emphasize skills while downplaying work history make it harder to evaluate candidates

Reliance on AI undermines your skills & professionalism

Hiring managers aren’t universally anti-AI, but they’re cautious about applications that feel generated, impersonal, or detached from real experience.

79% say candidates should disclose AI assistance in application materials
76% say AI-written resumes make it harder to understand what a candidate actually did
72% say heavy reliance on AI makes candidates seem less skilled

At the same time, some hiring managers view thoughtful AI use positively, but opinions are split.

59% say using AI signals a candidate’s adaptability
51% say it signals efficiency

Word choice & formatting are AI giveaways

When hiring managers think a resume was written with AI, it’s usually not one glaring mistake. It’s the overall feel. If the tone sounds off or the details feel thin, that’s often enough to raise suspicion. And most hiring managers say they do notice these signals.

The most common AI “tells” include:

Unnatural phrasing or tone (51%)
Repetitive or overly generic language (44%)
Vague or inflated descriptions (41%)
Buzzword-heavy writing (41%)
Perfect grammar with no variation (39%)
Specific formatting habits (for example, em dashes) (32%)
Incorrect or irrelevant details (27%)

Only 4% say they don’t notice signs of AI use at all, meaning most believe they can spot AI-written or AI-assisted resumes.

Key focus areas for hiring managers

Hiring managers aren’t only checking whether you meet requirements on paper. They also look for signals of readiness, recency, relevance, and fit, especially when reviewing large volumes of applications.

Employment gaps

Employment status rarely decides hiring outcomes by itself, but it does shape first impressions.

In our survey, hiring managers reviewed statements about how employment status influences their evaluation of candidates and selected all that applied. The results suggest that employment status is rarely ignored and often affects how resumes are initially read.

When candidates are currently employed, hiring managers infer readiness and recency:

38% say employed candidates seem more job-ready
37% say they feel more up to date with their skills
34% say they tend to have more recent references
33% say employment signals reliability or consistency
21% say they generally view employed candidates more favorably overall

When candidates are unemployed, hiring managers notice different signals (often logistical):

34% say unemployed candidates may be available to start sooner
24% say they’re easier to schedule for interviews
22% say they may be more motivated or responsive
13% say employment gaps are common and not concerning

Only 6% said they haven’t noticed any differences between employed and unemployed candidates, meaning most respondents said employment status influences evaluation in some way.

Skills over education

Hiring managers haven’t abandoned education, but they’re increasingly selective about what kind of education they reward.

When asked to evaluate a series of statements about education and hiring, most hiring managers agreed that formal education is still a core part of hiring. However, we noticed a clear shift in how education is valued, with relevance, experience, and demonstrable skills emphasized over degrees alone.

86% value relevant work experience over formal education
82% say certifications can be as valuable as a bachelor’s degree
79% agree self-taught skills or a strong portfolio are as valuable as formal education
72% say degree level matters in hiring decisions, suggesting education remains relevant but less decisive than other signals
65% agree a master’s degree justifies higher pay, with support declining among older hiring managers
- Generational findings are further broken down here: 74% of Gen Z, 69% of Millennials, 59% of Gen X, and 50% of Baby Boomers
62% say that bootcamp programs can qualify candidates for the roles they hire for

If you’re changing careers, skills & readiness

Career changes are common, and most hiring managers evaluate changers on clear signals that they can succeed in a new role.

Most hiring managers say they’re open to career changers:

33% say they focus primarily on relevant skills and experience
29% balance prior experience with new training or credentials
23% focus on transferable skills and growth potential

Taken together, 85% evaluate career changers based on skills or readiness rather than requiring direct role experience. By comparison:

14% generally prefer candidates with direct role experience
2% aren’t open to hiring career changers at all

Best range for salary negotiations

Salary negotiation is still part of the hiring process, but it happens within clearer boundaries than many candidates expect. To understand how much flexibility exists, we asked hiring managers how far candidates can realistically negotiate above an initial offer before it becomes a deal-breaker.

Hiring managers’ responses show a clear comfort zone. Some negotiation is expected, but it’s not unlimited.

Most hiring managers say they’re comfortable with increases in the 10% to 25% range, with 15% to 20% appearing most common

Requests beyond that range become increasingly uncommon, suggesting aggressive negotiation can backfire unless there’s a strong justification.

Skill assessment insights

When hiring managers decide who moves forward, skills remain one of the clearest signals of job readiness.

Communication & collaboration are in highest demand

Resume Genius’s 2023 Workplace Skills Report found that communication and collaboration mattered most to employers. Three years later, our latest survey data shows those same skills still rank highest, despite rapid changes in hiring and technology.

These are the top skills hiring managers say they prioritize today:

Communication and collaboration (48%)
Critical thinking and problem-solving (46%)
Industry or domain-specific knowledge (42%)
Project management (35%)
Data analysis (28%)
AI and machine learning (including prompt engineering) (26%)
Software development or engineering (25%)
Cybersecurity or cloud computing (22%)
Content creation (e.g., video, graphics, multimedia) (19%)

There’s growing interest in AI skills

Younger hiring managers are more likely to include AI skills among their top priorities, while older hiring managers place more weight on communication, judgment, and problem-solving.

Gen Z hiring managers are the most likely to prioritize AI skills:

37% say AI and machine learning matter most when deciding whether a candidate moves forward

That stance is less common among older age groups:

26% of Millennials
22% of Gen X
13% of Baby Boomers

Older hiring managers emphasize human skills more heavily:

70% of Baby Boomer hiring managers say communication and collaboration matter most

Younger employers are less likely to rank these skills at the top:

35% of Gen Z
47% of Millennials
50% of Gen X

A similar generational gap appears in views on critical thinking and problem-solving.

63% of Boomers prioritize critical thinking and problem-solving skills in applicants

Younger hiring managers are far less likely to rank critical thinking and problem-solving as top skills:

25% of Gen Z
45% of Millennials
55% of Gen X

Most employers consider AI skills important

AI tools are becoming more common in hiring and on the job, but that doesn’t mean candidates should lead with them.

To understand how AI skills factor into hiring decisions, we asked hiring managers (1) how important AI tool proficiency is, and (2) how they prefer candidates to demonstrate it.

Most hiring managers say AI tool proficiency plays a role in hiring decisions, but relatively few see it as a deciding factor:

78% say AI tool proficiency is at least “somewhat important”
- 19% say it’s “very important”
- 29% say it’s “important”
- 30% say it’s “somewhat important”
22% say it’s “not important”

The share of hiring managers who say AI skills are “important” or “very important” varies by generation:

Gen Z: 55%
Millennials: 52%
Gen X: 42%
Baby Boomers: 30%, while 42% say AI skills are “not important”

Most employers want to see evidence of your AI skills

According to employers, simply listing AI skills isn’t enough. In fact, more than half of hiring managers (60%) say they want to test, discuss, or see proof of a candidate’s AI abilities rather than take resume claims at face value.

Here’s how hiring managers prefer to see AI skills demonstrated by candidates:

Applied in an interview or task (26%)
Mentioned briefly on a resume (19%)
Reflected through work examples or outcomes (19%)
Supported by certifications or courses (15%)
Don’t want candidates emphasizing AI skills (21%)

Overall, hiring managers are more receptive to AI skills when they’re shown in context, such as through interviews, tasks, or real work examples, rather than heavily emphasized in application materials.

Conclusion

Hiring in 2026 is faster, more automated, and more competitive than it used to be, but the basics still decide who moves forward. Hiring managers use ATS and AI to manage volume, not to replace human judgment. Ultimately, candidates move forward when they clearly show they’re a good fit for the role.

Across the report, a few themes remain consistent: relevant experience and skills outweigh credentials, and employers continue to prioritize communication, problem-solving, and role-specific knowledge.

For job seekers, the best strategy is to optimize for relevance and clarity. Tailor your resume to the role, connect your skills to the job posting, and be ready to explain any situational context — whether that’s a career change, time out of work, or how you use AI to improve your job performance. And when it comes to salary, negotiate confidently, but keep your request realistic and anchored in evidence.

The hiring process may be changing, but what hiring managers want hasn’t. Candidates who communicate clearly, show good judgment, and demonstrate a real impact will continue to stand out, no matter how automated hiring becomes.

Methodology

This report is based on a survey of 1,000 U.S. hiring managers, conducted by Pollfish using its Random Device Engagement (RDE) methodology to ensure a diverse, demographically balanced sample. Respondents were screened to confirm they were directly responsible for hiring employees within their organization.

The survey examined how candidates are screened in 2026, with a focus on ATS usage, AI-assisted hiring tools, resume evaluation and rejection factors, skills assessment, interview decisions, salary negotiation boundaries, and differences across age and gender groups.

Resume Genius used standard statistical methods to analyze the survey data and identify overall trends and demographic differences across age and gender groups. Percentages were rounded to the nearest whole number.

For further details or media inquiries, please contact eduardo@resumegenius.com.

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