HR has possibly the greatest opportunity it has ever had to make a major impact on organisations but must act now while the economy is in a stabilising phase or risk losing ground to competitors when a true recovery gets underway.

That was the message on Wednesday night from business coach and recruiter.co.uk contributor Ed Percival of Shirlaws at a talent management masterclass conducted in London by the Chemistry Group.

If the current recession is taking the shape of a W, or a double dip downturn, as Percival believes, the economy has rebounded from the first low point. At this time, it is in a “drag” state before potentially falling into the second dip.

In the W-shaped recovery, Percival said, “the second dip, what we call the release, begins when the financial market suddenly drops by a significant amount. I can’t predict when exactly that will be”, he said, but added it could be between six months and six years.

Business people should keep an eye on the FTSE index, he suggested, because “that will drop six to 12 months ahead of the economy”.

Along the lines of this theory, Percival said, “Companies need to have invested in capability during the ‘drag’. But “if you do nothing to transform your business, you will get left behind.

“This is the time when you can make the biggest difference.”