Leicester fought back to claim the win in dramatic fashion with a late penalty try - their second of the game.
However, Hill focussed on the positives and the manner of the home display in front of a passionate sell-out crowd at Sixways.
"The crowd got right behind us and I sensed they appreciated the effort the players put in," he said.
"The players showed passion and can go into the club house with their heads held high; all 21 that got on were absolutely superb and gave everything.
"It was not perfect, there were some errors here and there, but our ambition to play with the ball in hand was outstanding.
"I am bitterly disappointed for the club and for the players because they put so much effort in, but I can look back and I think we made a step forward.
"Not just the effort, sometimes we have seen huge effort and not a lot of quality, but tonight, from where I was sitting, I saw a lot more quality.
"If we play like that, with passion and quality, then we are not going to lose too many more games this season."
"Apart from the last minute of the first half, it was all Worcester and we were superb," he added.
"For us to concede a try and lose our number ten to the sin bin was an absolute killer 30 seconds for us.
"We have picked up points in all of the last seven games, tonight we have had to satisfy ourselves with one point.
"We are very competitive and sometimes we win and on night's like tonight it is hard to take when you lose.
"We have got to keep battling on; the side is progressing and has confidence. We are not far away from being a very good side."