The legendary Scot took the Reds from 12th in the table when he arrived in January to a sixth-place finish in the Barclays Premier League.
As a result, the club's owners Fenway Sports Group moved to hand Dalglish and first-team coach Steve Clarke permanent three-year deals in May - and it was news that delighted Skrtel.
He told LFC Weekly: "Kenny gave us our confidence back. His first game was against Manchester United in the Cup. Our first meeting with him took place that weekend and he said we had to trust him because he trusted us.
"He told us the most important thing was a good team spirit and if we played together we could get some success. He has kept our confidence high and that has been the most important thing.
"He's done it through his personality. He's a nice guy and he's always joking and smiling. He has changed the atmosphere around the team."