He will get better. I've had loads of hamsters and many start off this way.
Good tips -
Find a large shallow cardboard box (such as the kind of pallet box you might see in the supermarket holding apples is ideal).
Put the cage in it and take the cage bit off (leaving just the plastic tray).
Using a kitchen roll and other 'toys' gently get the hamster used to you being around.
Lift the cage out to leave the empty box with a few boxes and tubes in to play with your hamster.
Always show the hamster the back of your hand before you attempt to pick them up from above - if you don't it is very scary (think like a bird of prey swooping down on them) and they may respond with squeaking in fright or even aggression.
Scooping with both hands is a good way of picking the hamster up gently at first (inside the shallow tray, and giving them ample opportunity to 'escape' should they wish).
Later on when your hamster is more confident, showing them the back of your hand (to sniff) and then picking them up from above with their nose facing towards your wrist (i.e. pick them up by the bottom!) is a good way.
Hand-walking is a favourite pastime with some hamsters. When they are confident, just letting them walk from hand to hand for ages while you talk to them gently will help them get used to your voice.
Finally, never (ever ever) attempt to pick hammy up from his/her bed (asleep or not) as they won't take kindly and may hiss (and/or bite hard) if taken by surprise in this way.
Hope this helps.