The former Manchester United midfielder says the manager has done 'a tonne of things' to change things around.
The Villans looked set for relegation this season after a poor campaign under former manager Paul Lambert, with their lack of firepower in the final third being a particular problem.
However, things have turned around since the club appointed Sherwood in the middle of February, with the former Tottenham Hotspur head coach guiding them to the FA Cup final with a last-four win over Liverpool and, although they suffered a 6-1 hammering at Southampton on Saturday afternoon, top-flight safety.
Now, Hargreaves has highlighted the things the manager has done to turn things around since he took charge.
“I think he’s done a tonne of things,” he said.
“Everybody knew Benteke was their best player and I think he’s been very isolated at times under Paul Lambert. I think they’ve tried to get bodies up and support him.”
A particular highlight of Sherwood’s reign so far has been the resurgence of forward Benteke, who had looked a shadow of the forward that terrorised defences in his debut Premier League campaign.
There have been improvements elsewhere, though, with a number of players having upped their game in recent months. Specifically, the midfield trio of Fabian Delph, Tom Cleverley and Ashley Westwood have all shone under the guidance of a new boss.
And Hargreaves believes that getting the balance of the midfield right has been a key aspect of their successes so far.
“I think once he got those bodies higher up the pitch and that midfield balance right, they look a completely different side,” he added.
“They’re not a team that can absorb pressure very well, they’ve got better players going forward and I think he’s made that change.”