Blashill was hired June 9, 2015, to replace Mike Babcock, who was Red Wings coach from 2005-15.
The Detroit native joined the Red Wings in 2011-12 as an assistant. He coached Grand Rapids, Detroit's American Hockey League affiliate, from 2012-15 before becoming coach of the Red Wings.
"There's a very fine line in this league between being a contender and being where we are right now," Blashill said. "That's a good thing for us, but we can't just talk about being better. Now we have to take the next step and start turning competitive games into wins."
Detroit (31-38-10), which has been eliminated from playoff contention, has won five straight games and seven of its past eight entering its game against the Pittsburgh Penguins at Little Caesars Arena on Tuesday (7:30 p.m. ET; FS-D+, ATTSN-PT, NHL.TV).
"I think Jeff has done a very, very good job considering the circumstances of the rebuild," Holland said. "Our team has been competitive on a night-to-night basis, and we've been involved to close to the most one-goal games in the League. When I look at the development of the young players on our team as we've gone through this rebuild, they've all improved."
NHL.com correspondent Dave Hogg contributed to this report