The former England skipper replaced Pat Fenlon earlier this month and inherits a squad still reeling from a record 7-0 Europa League defeat to Malmo as well as two mortifying Edinburgh derby defeats.
But 19-year-old Handling claims the former Inverness manager and his number two Maurice Malpass have already managed to boost confidence in the Leith ranks after just a fortnight in charge.
He said: "Terry and Maurice are great motivators. They are very good at what they do - they can motivate anyone.
"They got us up for the St Mirren game so quickly after the disappointment of losing to Inverness and we were all buzzing to play. Even the subs were desperate to get on and make an impression.
"They have all these different ways of getting us positive and confident. We've had a few meetings with him as a group where he has sat us down and asked us questions about how we feel about certain things. He's also played us a few DVDs which are aimed at motivating us as well.
"That confidence is crucial because without it, you just won't play well. But he is already starting to put that back into the squad and we all appreciate it."
Former Caley Thistle manager Butcher will make a swift return to the Highlands as he takes his new charges north for Saturday's William Hill Scottish Cup fourth round clash with Ross County.
If Hibs are to bring their 111-year wait to lift the trophy to an end, they have to register their first ever victory against the Staggies.
However, despite the weight of history counting against them, Handling is sticking to Butcher's new philosophy of optimism.
"It would be massive for me if I could help end that long wait for the trophy," he said. "Obviously the fans want us to do well and win cups and we've reached the final these past two years without winning it.
"That was disappointing but it is a success in it's own way as not too many teams reach back-to-back finals.
"But to bounce back and rectify it at the third attempt would be a huge achievement.
"However, we can't look that far ahead and right now we're just looking forward to Ross County on Saturday. I think we've got a good chance up there.
"We've never won up there but that's not what we are focusing on. We're trying to be positive."