The Baggies head coach had inspired a revival in fortunes since his arrival in January with 13 points from eight games taking them to the 40-point mark.
But Hodgson is aware the squad at his disposal needs strengthening if Albion are to avoid being involved in another relegation battle next year.
The former Liverpool boss said: "I think we need to make some improvements to the squad if we do stay up.
"We need to be looking very carefully at how we are going to improve this squad.
"We are running on a reasonably small squad of players. We are asking an awful lot of inexperienced players who are getting better all the time.
"But if we want to have a good Premier League campaign next season, it is very important we sign several players in the summer that will really help us.
"It will also take some of the burden away from the Youssuf Mulumbus and Peter Odemwingies who, you must remember, are in their first season in the Premier League."
Hodgson is taking nothing for granted in terms of West Brom being safe this time.
He said: "We still need one or two points but if we do survive then it will be an achievement for this club."