Identify five key concepts or considerations about billable hours related to paralegals from the following text:

As is the case with contingency fees, it is more advantageous to the firm to allow junior attorneys and paralegals to perform as much of the work as possible in cases being billed on a fixed-fee basis, to maximize profits. In a variation on flat fees, some firms agree to transaction fees, in which an entire transaction, such as a merger or acquisition, is completed for a fixed sum. In other instances, the firm quotes a flat fee to the client but retains the ability for negotiate for exceptions to that fee if something unexpected arises in the case. Some clients offer their attorneys success fees, which are essentially bonuses for completing a transaction early. For example, a firm may receive a bonus of $100,000 if it can close a deal by a certain date or ensure that the client acquires title to real estate by a certain date. The law firm is then provided the incentive to work harder on the client's case to earn the success fee. Hourly fees. Since the late 1960s, most law firms have charged hourly fees, or a certain amount for each hour of time spent on the client's case. Hourly fees are the norm because it is nearly impossible for a law firm to predict how much work a case will involve, especially when many factors are not within the firm's ability to control, such as crowded court calendars. Hourly rates vary based on market conditions, the reputation of the firm, the nature of the case, and, most important, the level of experience of the legal professional. The hourly rate may also vary according to activity so that conducting a deposition or appearing in court may require a higher fee. According to a 2019 report by Clio, a legal technology company, the average billing rate in 2019 was $253 per hour for attorneys and about $150 per hour for nonlawyers. Note that these are average rates. Large firms routinely charge in excess of $600 per hour for senior attorneys, and nationally known attorneys might charge $1,000 or more per hour. Some practice groups charge more than others, with attorneys engaged in intellectual property law, bankruptcy, corporate law, and tax work often charging more per hour than other practice groups. Many law firms follow "the rule of thirds," which means that one-third of the revenue generated by hourly fees is allocated to law firm salaries, one-third to overhead (insurance, rent, computer services, and the like), and one-third to profit for the firm's partners or shareholders. A newer form of fee arrangement is a blended billing rate, which allows law firms to bill a set hourly rate (for example, $350 per hour), regardless of which individual legal professional works on the case. Blended billing rates are more frequently charged in litigation matters than in transactional matters. As you recall from Chapter Two, more and more clients are demanding reforms in billing. For example, the Hartford Financial Services Group, Inc. provides strict billing guidelines to its outside counsel and has a list of tasks that it will not pay for, including file maintenance and organization, proofreading of documents, and routine scheduling of depositions. 2.Concerns About Billable Hours The obvious advantages of billing on an hourly basis are that it allows a firm to determine easily the productivity of attorneys and paralegals and allows clients to pay for the actual services rendered to them on a matter. The great disadvantage of billable hours (the time that can be charged to a client) is that it places p. 366tremendous pressure on legal professionals to bill more and more time in order to generate profit for the firm and perhaps earn performance bonuses for themselves. The problem is compounded by the fact that many firms require attorneys and paralegals to bill a stated number of hours each year. For example, a new associate might be required to bill 1,900 hours, and a paralegal might be required to bill 1,500 hours each year. Depending on the location and size of the firm, these requirements can be considerably higher (as high as 2,300 for attorneys and nearly 1,600 for paralegals). Because legal professionals meet friends for lunch, attend firm business meetings, visit with colleagues, attend seminars, and so forth, not every minute during a workday is billable. Thus, there is tremendous pressure to meet the stated quotas to remain employed, receive a bonus, or be viewed as a productive and efficient team member. When mandatory billable hours are set by a firm, attorneys and paralegals must work many hours more than those that are billed. At least one legal consulting firm has estimated that typically three hours are worked for every two hours that are billed. If that is the case, to bill 1,400 hours per year, a paralegal has to work 2,100 hours, which comes to 40 hours each week throughout the year. If the paralegal wishes to take a vacation or is sick, the time must be made up in some way, thus leading to a grueling pace and a temptation to pad time by recording hours in excess of those actually spent on client work. There have been numerous articles, reports, and surveys about what is variously called the "tyranny," "corrosive effect," and "burden" of billable hours. Among the findings of a 2002 ABA Commission on Billable Hours were that over-reliance on billable hours: Results in a decline of the collegiality of law firm culture, an increase in the departures of associates, and a reduction in pro bono work; Encourages skipping steps; Provides no predictability of costs for the client because the client does not know the ultimate cost until the project concludes; and Puts the client's interests in conflict with the attorney's interests. The Commission also determined that approximately 80 percent of the firms it surveyed used billable hours to determine associates' salaries and bonuses. The Commission recommended the use of alternative billing methods (such as billing based on the value of the work, partial contingency fees, task-based billing, and fixed rates) and elimination of strict, mandatory billable hours requirements. Criticism of hourly billing continues. Because some firms do not give credit for time spent on nonbillable activities (such as community service, mentoring, pro bono work, writing and academic work, and bar activities), attorneys may decline to participate in such activities, and most perceive the law firm's message to be that the only thing valued by the firm is billable hours. Keep in mind that the emphasis on billable hours is not as great in public interest law firms, legal clinics, and government legal departments because these entities do not bill time to a paying client. To encourage pro bono work, some firms allow attorneys and paralegals to devote a certain number of hours to pro bono activities (for example, 50 hours per year) and count that time toward any minimum billable hour requirements. In a new development, in 2019 a large law firm began allowing associates to spend up to 50 hours on diversity-related work, activities, and training and to count those hours toward billable hour requirements.